Cash Refinance or Home Equity on Rental Property

[Carmen Giordano]

HI everyone, I am new to biggerpockets and my husband and I have decided we want to expand our rental properties in order to obtain more monthly cash flow. 

I was a real estate agent and am no longer working for others since I have had a baby 10 months ago. I plan to become a full time landlord/investor in order to stay home with my daughter.

We currently have 3 rental properties 2 that are paid of and 1 that has a mortgage on, we are trying to obtain more rental properties and don't know if we should sell one of our properties and use that for multiple down payments, do a cash out refinance or a home equity line. 

Property 1- Single Family Home which we bought for $88,000 after fixing it up and all fees we put $110,00 into it. Taxes are $780 a year and $1,000 insurance. It's rented out for $1,300 and we net about $975 after all expenses. NO MORTGAGE. Market Value- $150,000

Property 2- Duplex which was bought for $85,000 after reno and fees we put into it $107,000. Taxes are $2,200. Insurance is $2,000. NO MORTGAGE. One unit is $700, the other is rented out for $750. We net $1,000 after all expenses. Market Value- $165,000

Property 3- Single family was bought for $146,000 no renovation. Current Market value is $240,000. Rented out for $1,400. Taxes- $5,100 Insurance, $900. Mortgage- $668. We net $200 after all expenses. 

My husband has excellent/perfect credit and a steady income. I am the one who takes care of all the real estate and now I have come to a confusion on how to move on. We currently have not much cash in the bank so we're not sure if to sell, or use bank money. He is also skeptical on not having at least one property paid off fully because he is scraed of an emergency we would not have cash. Can you all give some input on what you would do?

Greatly appreciate it!