Pulling out the equity of my recently purchased REI for an NYC condo

[David Janash]

Hi All, question for ya,
I closed on a REI property in Scottsdale AZ in October 2012 and it has been rented for 3 years - DONE!
I bought the place from a distressed seller, who was originally asking 975K, I got it for 850K. I have also put money into the home. I am hoping it's now worth 1.1MM maybe even 1.2MM.

I have 2 notes on it for 680K or so. Can I pull my money out so soon? I would do so and buy a place in NYC where I live and use it to put on my down payment for my Personal Residence, between 1.8 and 2.1 in Manhattan

Some questions,

will a mortgage company look past the fact that the 400K check is tied to the AZ house.
Is It to soon?
Should I have the place re-appraised?
Thankfully my personal income and savings will pay for the rest of the closing costs and monthly.

Any suggestions