Newbie Question - How To Use Equity To Finance Another Multi-Family?

[Erik B.]

Hi there,

I have some newbie questions for everyone. I currently own a four-unit property in Los Angeles County. I'm living in one of the units and renting out the others. I purchased the property in 2022 with my VA Home Loan, so I have a very low interest rate of 2.75%.

Long story short, we've finished renovating and stabilizing rents (for the most part). If we were to rent out the unit we live in the place would cashflow, even if it were slightly bellow market rent.  We'd like to purchase another property but are not sure how to capture some of the equity we have in the current property to start making offers. Refinancing seems to be out of the question given our current rate. Am I missing something here, or should I be considering other ways besides pulling from our four-unit property?

Thanks so much! 

[Erik B.]

@Gino Barbaro Thanks! We'll look into a HELOC. Thanks again for the response!