Investment Property Equity

[Francesco G.]

Hi everyone,

I'm contemplating taking some equity out of my first investment property to fund the downpayment on my second which I just went under contract for.  I'm currently at 4.1% on my first property with a 20 year fixed rate.  I can take out about $75k to put down on my new purchase.  Only catch is that since rates have creeped up I'm not sure if its worth it to switch my first loan to a 30 year fixed at 5-5.5% to get the equity out.  My goal is to accumulate a few properties this year.  I've currently got the cash for the second downpayment but would rather hold onto it in case another deal comes up this year.  Would love to hear everyone's take on this.  Is it worth it to to pay more on the first loan and use that equity or should i leave that one alone since the rate is good and use my own cash for the downpayment on the second property?

Thanks