Cash Out Refinance Vs. Using Property as a Collateral?

[Lokesh W.]

Hello Everyone,

I have owned this rental property for a few years now and I want to use 50K of the equity as a down payment to buy another property. The lending bank said they can do this either by cash out refinance or using the property as a collateral. I have read few articles about the pros and cons of these 2 ways of using equity. If any of you have borrowed money against the equity of an existing property, can you please provide me some suggestions on the pros and cons.

Any suggestions are greatly appreciated.

Thanks

Lokesh