Tapping Equity for Additional Purchase

[Daniel Mills]

Hi all,

I currently own 5 SFH rental properties - 2 in Idaho and 3 in Tennessee. While I am confident in finding deals and managing my property manager, I am not sure where to go from here. The two properties I bought in Idaho have gone up in value a bit since I bought them. I purchased both for $120,000 but they appraised for $129,000 at the time. I have had them for about a year, and it seems they are now valued between $135K to $140K. I have a couple of questions:

1. Is it possible to tap any of that equity, and if so, how? 

2. Is it worth it, or should I wait until the value increases more?

3. What do I use? An equity line of credit, cash out refinance etc.?

4. Can you use money from tapping the equity as a down payment on another property or can you only use it for all cash buys? 

5. Any other advice or ideas?

Thanks,

Daniel