Best way to get equity out of rental house?

[Scott Kuhnert]

I'm looking for thoughts on how, or if, I should get access to the equity in a rental house?

Situation: I own a SFR 3/2 in WA that currently rents for 1900/mo. It currently cash flows about $100. There is roughly $70k-$80k worth of equity in the house that is just sitting there that I can't access. I can only think of 2 options:

1- HELOC: Would probably only get 80% LTV best case (due to it being an investment property), only yielding access to a few thousand dollars.

2- Cash-out Refi: If I maintain my 3.5% rate, my monthly payments increase $280, putting me in a negative cash flow situation.

Should I take the monthly hit for access to the equity?  Just wait and hold on longer?  Or are there other creative strategies that I'm not thinking of?