Heloc vs Conventional for buy & hold
Need some advice on whether to purchase a rental property (160k) with a already established Heloc that currently has a zero balance or doing conventional financing. Conventional is at 5.25% with 2% points roughly ($3200) and 25% down. I understand the Heloc is going to increase soon and a couple times this year but if I can get the Heloc paid off in under 3 yrs do you think it would save money with all the closing cost/higher rate that the conventional will cost me? Heloc rate right now is 3.5%. Thanks