What should I do with my rental?

[Mike Warder]

I bought a condo in Denver in 2006 for $2,700 down. I owe $30k and it is now worth $100-$110k. I cash flow about $250/month, which is nice, but I would like to put some of that equity to work as down payments on more properties. My REI goals are to acquire 1-2 buy and hold properties a year. I have two other properties in South Carolina right now.

Cashout refi - Maybe I could get about $45k cash to work with. I've spoken with two lenders about a cashout refi and they both said they would only do a 15 year loan on an investment property, which would increase my monthly payments and bring me close to cashflow neutral (within $50). I worry that a market dip would make it cashflow negative. Do lenders offer 30 year loans on cashout refi's? 

Sell - I could just lock in my appreciation gains right now and sell. However, I hear that Denver is still hot and likely to stay hot for a bit. I'd hate to miss out on additional appreciation. 

Heloc - I don't know much about Heloc's, but they seem like not a great vehicle for financing downpayments. Is that wrong? 

Am I analyzing things correctly? Are there other things I should be considering? Any thoughts or advice would be greatly appreciated. 

[John Thedford]

I like the cash out refi option if you can find a good place to put the funds. Don't over-leverage and you will be fine. Always buy under market. This gives some insulation against market downturns.