Cash Out ReFi or 1st Time Commerical Loan

[Walli Miller]

What financing options are best?  I have a rental property with over $200k in equity the current loan is at 3.5% with about 16 years left.  I have the opportunity to own 3 buildings with two units each. (3 duplexes) I was going to do a conventional loan but since there are 6 units I'd have to go the commercial loan route. (So I was told.) The problem is that the loan would be for $240k and apparently, that's low. So what are my options?

Here are the numbers: 

Rental property 1 = $525k value, $203k left on the mortgage

Rental property 2 = $375,000 seller is asking the 3 duplexes

1)CashOut Refi the first rental property and take out $200k? New loan terms would be 4.5% for 30 years 

2) Refi the first rental property and take out enough to buy one of the buildings in cash and get a conventional mortgage for the other two buildings

Any other suggestions? This isn't really a BRRRR as there will be minimal renovations or updating.