That way you has a fixed rate.

I know everyone says to get out of the balloons and into a fixed 30 year. 

Know what needs to be done, know the bank will not be fixing it, and base your best offer on that.

Arthur Voskanyan  A cash out refi is generally a first lien 30 year fixed rate VS a HELOC is 10 years interest only second lien with a variable rateRates depend on the loan amount, your credit, if you occupy the property, the loan balance, ect @Chris Mason should be able to provide you specifics

we bought a bank owned house that we want to fix up and live in.

This will assist for 6 months to a year but is not a permanent fix for the root cause of the odor.  

I paid cash and am going to refi cash out with a local credit union once it is fixed up and leased out, then buy another house with the $$$.

My strategy is to find a multifamily unit that can use some repairs, nothing too crazy, to find a good deal, fix it, live in a unit ideally with a roommate and rent the other units out.

The down payments on those are at least 35%.As @Dave Van Horn points out, if you stay with 1-4 unit properties you can get conventional, 30 year fixed rate financing.

Hi Friends in Biggerpockets,I am trying to get cash out loan (30 year fixed) from my primary house as and use it to do real estate investment.My plan is to use the refi-ed cash to do both purchase and rehab (then rented it out) and I wanted to deduct the loan interest.I know from purchase side, the amount of mortgage interest can be deducted as expense for as long as the loan exists and I hold the rental property.For rehab, the situation is more complicated.