Should I refinance all properties or just the one?

[Steve Dudeck]

We have 3 rental properties. Property 1 & 2 we own outright. The 3rd was recently purchased using a Line of Credit from our first 2 properties.

We want to refinance the 3rd property to more favorable terms. We are not sure what to do. Should we...

1. Refinance the 3rd property so that we get our Line of Credit back. (Then have the Line to use for future purchase)

or

2. Refinance all 3 properties and pull out a chunk of money to have in case we want to purchase a 4th. 

Not sure which way would be better. We are trying to figure out the + and -s