Buying second multi-family

[Michael Hutchinson]

Background:  I have a 8 plex where I have about $200k left on loan at 5.95%.  I have rehabbed it and raised rents from $375 to $700 with full occupancy.  It should value between $850k-950k I think, but haven't tried yet.

Question:   I am debating options to use the equity.  I think my only real option is cash out refinance, but I guess I could do asset based financing if it was more attractive.   Are those really the two choices?   Cash out and use the extra money to by more or pledge the asset on the second?   Is there any reason to do the asset based financing? 

FYI, I am a lender, but focus on residential not commercial so I am unfamiliar the second scenario.