Your true return has to be risk adjusted.  

The LOC adjusts each year.

I would suggest you take a few months and watch the market before jumping in because the market has adjusted the pricing because it's hot. 

Here's the thing about ALE and similar agencies: they can be a goldmine, but you need to adjust your approach to meet their demand sweet spot.

To beat 5.25% mortgage rate....the corresponding, offsetting stock market return would be at least double that...To answer your question requires (1) knowing what risk adjusted return you will be able to earn in the future (2) knowing what interest rates will do in the future.  

Here’s how it works:Population Decline or Stagnation: If the population is static or shrinking, the current housing supply meets demand, and property prices decline (in inflation-adjusted dollars).

You'll see a hike in rate going from FHA to conventional in general (especially if your plan is to pull some of that equity), but you're also going from owner occupied to investment (if you plan on moving) which is another layer of pricing adjustments.

I can make larger adjustments in rent when a turnover occurs.

I made adjustments, and it paid off when I found great tenants for the third-floor unit.Improvements Add Up: From installing a shared washer and dryer to renovating my unit’s kitchen, every improvement added value to the property and increased its appeal.Stay Financially Savvy: Refinancing my mortgage and renting out the garage spaces were big wins that helped offset costs and improve cash flow.Expect the Unexpected: Maintenance surprises (like a flooded toilet or diagnosing strange sewer smells) are part of the journey.

Had several challenges with their bookkeeping after I had to make an adjustment to one of my monthly payments.