Using equity in rental property for new primary home mortgage

[Ryan D.]

I'm trying to learn about rental property equity financing. But all the articles I find are about using equity in your HOME to buy a second property or rental property. But what about using home equity in your rental property to buy a new primary home?

Since 2015 I've had a rental unit in Virginia while I lived in CA. I sold my house in CA and am moving back to VA. I don't want to live in my condo so I'm going to buy a new home. I am looking into all my options to include possibly using the equity in my condo to assist in buying the home I want. I know the difference between a cash out refinance vs HEL vs HELOC. But I don't know the particulars and advantages/disadvantages for those options in regards to using it on a rental property, especially during this time with the pandemic and all the new lender requirements. Any insight would be greatly appreciated!

If you need numbers, my mortgage balance for my rental property is $143k and the estimated value is $220k.