Covert VA or Cash out on a Conventional to buy again?

[Nicole Shue]

I'm looking to buy my 4th single family property...will live in it for 2-3 years (I'm military) then rent or possibly sell (Colorado Springs, new market area for me). Wondering whether it is better to convert the VA loan on one of my rental homes to a conventional so I can reuse my VA loan, or alternatively refinance a conventional loan on my rental condo and pull out equity to use for a 20% downpayment on another conventional loan. The VA property current estimate (not appraisal) is $244K over my purchase price and $297K over the current loan balance and is at 3.5%. The Conventional property estimate (not appraisal) is $195K over purchase price and $303K over the current loan balance and is at 4% interest. I intend to own the Conventional loan condo forever, and will either sell the VA loan house in the next 5-10 years or tear it down and potentially build a multiplex (it's a 1920's bungalow so lots of maintenance, but is on a multi-zoned huge lot). Both rental properties are in San Diego. If I refinance I need to pull out about $100K for the Colo Springs downpayment and pay some medical bills.