A cash out refinance is the better choice for a few reasons including lower rates, longer term (30 year vs Heloc shorter term) equals a lower payment.

Unlike other areas on the WA/OR coast it is often quite a walk to the beach from an "ocean front" property but it ain't bad.Nightly rates are on the lower side so I am not sure how well it would pencil out. 

Lots of work.I like the idea for most folks we are looking to invest to get to 10 to 50 doors which ever way they can either sfr or small multi or a nice 50 unit garden apartment.. etc etc. its the rental business and all that comes with it.

OH   Oakbrook- Baton Rouge, LAShadow Glen- Manor TX   The Element- Sacramento CA   The Walk- Tuscaloosa ALWolf Run- Reno NV   Vintage Horizon West- Winter Garden FL   AW Newport- Tempe AZ4 & J- San Diego CA

If any lenders offer lower amounts, they likely still have a minimum origination fee or higher interest rate and are usually individual private lenders rather than institutional private money sources.

The refi will be WAY cheaper than buying points and you'll likely end up with a lower rate than you can buy down to now. 

Quote from @Adrian Clapp: Montana’s proposed law would lower property taxes for primary residencesand long-term rental properties while increasing taxes on second homes and other high-value properties.Pigeon Forge area made all STR's commercial properties and substantialy increased the property tax on these properties.Unfortunatly this is the cost of doing business. 

I would wait until you have more equity and do a cash out refi when the interest rates lower at least 1% or more.

How SB-937 Lowers Upfront Costs // Deferred Impact Fees · Builders can postpone school fees and certain public improvement costs until occupancy approval. // Improved Project Feasibility · Reduces early-stage financial burdens, making more housing projects viable

If the gap still exists, is it more narrow today than it was during the lower rate environment?