What To Do?! Sell or Borrow?

[Tony Schwartz]

Hey Gang,
I'm looking for a little advice.
I own 2 rental properties free and clear in Florida. These are 2 bed/2 bath single family homes that rent out on a yearly basis. I now want to purchase a larger and more expensive home on water to VRBO.
So, do I take equity lines against the 2 I own and use that along with a mortgage on the new place? Or, do I sell these 2 and tax defer exchange them into the other property (assuming I can time it properly)?
I'm sure you will need more information than what is here so let me know what else would be helpful to know and shoot me your opinions.
Thanks.