Need your creativity

[Jeremy Clarke]

So I own a rental property here in Denver. It has between $250k-$300k of equity in it at 3.25% interest rate. I gross about $1,200 a month after I pay the mortgage. Mortgage is $2,500, rent is $3,750. 

I'm looking to purchase a primary residence in Denver but don't have the cash for a downpayment at the moment. I'm potentially looking to take equity out of that house to buy another. I'm concerned a cash-out refi isn't a great idea because of the current interest rate I have. What are your thoughts? Should I do a Cash-Out refi, see if i can get a heloc, other options I'm not thinking of?