Have massive equity, want to leverage it

[Matthew Adams]

Hi all,

Situation:  finishing 100% short term rental on second structure on property of current home.  Should rent for neighborhood of $200/night on average and is available 100% as soon as we finish, hopefully before Valentine's Day.  We also have a 100% vacation rental on the Gulf Coast that we renovated last Oct & have had on market since Nov 1.  We've had 4 stays through New Year's and are expecting things to pick up as we continue into the new year.

We also have a single family home in suburban Austin that we currently lease annually.  It is NOT our primary home, nor could we plausibly make a case that it is, so long term capital gains taxes would apply if we were to sell it.  Next lease renewal is like Jun 30.  We profit about $400/mo on the rental currently.  This home has increased in value incredibly over the last few years.  I'd say we have at least $360,000 in equity in it as I write this (based on estimates from Zillow, Redfin & realtor.com).

While we're planning on increasing the rent for the next term if we keep the property, I'd like to learn how I could leverage this equity into substantially more monthly income with little to no out of pocket expense and no capital gains taxes.

I have no experience with loans other than FHA or conventional on first or second homes, although I'm vaguely aware of alternative financing methods (asset loans, etc).

Any advice on how to turn that equity into substantially more monthly income?

Thanks in advance,

Matthew