I typically advice a cash out refi over a HELOC if you have an immediate use for the funds since HELOCs have variable interest rates, but you also want to take your current interest rate into consideration.

If I could give it to zero ratings I would.

I’ve had this itch to get into real estate for a long time, but everytime I start to dip my toes in I get the feeling that with prices/rates where there at it’s hard to justify pulling money from risk free 5.5% ?

in the slightly less desirable area, 12-1500 sqft (goal $14-1700/mo)1BR below it with living and dining, porch, and great stained glass and architectural features, 1000 sqft (goal $11-1300/mo)This building also has one driveway space thinking $50/mo2 x 2BRs, smaller but in the more desirable location ~1000 sq ft (goal $14-1600/mo)1 BR small in the more desirable location ~ 800 sq ft (goal $9-1100/mo)TR: 6200-7300/moOrder of operations would be as follows: 1) Accounting and structuring - still a lot TBD but I am meeting with a CPA firm with a lot of real estate structuring and consulting experience, I expect they'll be pretty expensive but this doesn't seem like a good place to cheap out.

Valuations prior to establishing residency is tax at different rate.

That rate, TODAY is WAY low!!

The downside of the HELOC is the interest rate is usually higher so you will want to pay it off faster. 

.- in appreciation market with cheap money/low interest rate condition, flipping is much much better than renting.

I would weigh those two options out and see what costs less overall between an entire new loan and or the blended rate of the two.

Nobody knows what is going to happen with rates...trying to guess or forecast is a fool's errand.