My first rental property

[Tim S.]

I currently live in a 2 bedroom SFH purchased for 36k (bank loan of 30k and 6k down payment). I am now interested in purchasing another similar home except with 3 bedrooms. I will again be using the bank to finance the home but I would like to use the equity in my current home. My question is what is the difference between a HELOC and a cash out refinance? What are the pros and cons? Thanks!