How can I best use my $300k in equity for down payment

[Jennifer Drew]

Hello everyone!

I currently own two multi family properties. I have a four unit, and a duplex. I just bought the duplex two months ago with an FHA loan, so I will be living there until the end of January, and then moving back to the four unit building.

I bought the four unit in 2013 and rehabbed it for a total loan amount of $459,000 and I have refinanced it to a conventional loan, and the remaining balance is around $445,000. The property is  worth somewhere around $750,000 and perhaps a bit more. This leaves me with approximately $300,000 in equity. 

I am wondering how best to take advantage of my equity. Should I wait until next February when I move back to the four unit and it is my primary residence again and then do a HELOC? Would a cash out refi be better? My current interest rate is 3.75% on a 15 year loan, so I feel like this option might not be great because my interest rate on the new mortgage would be higher, and I only have 14 years to go now on this mortgage (but then again I'm new so if you think this is a good option please tell me why)!

Most people in my neighborhood have seen an average of $100,000 in equity per year if they've bought in the past five years or so. But prices are high so if I want to buy here, most of the equity will be used towards the down payment (am I allowed to do that?) Or would I be better off going to another market where I could purchase several multi unit properties with the equity that I have (they will be cash flowing properties, but not have the same potential for equity growth as my current neighborhood).

Hope that I've explained everything clearly enough! I look forward to any advice or recommendations that you all have. 

Cheers,

Jen

[Jennifer Drew]

@Curt Davis I've heard that some banks will loan 90% LTV. Is this your experience? Also, yes, I do need to live in the duplex for one year, which is why I said I wouldn't do the HELOC until next February once I move back to the four unit. Also, I see you're in Memphis. The other market I'm considering is actually Knoxville, since I went to UT and I'm familiar with the area. Thanks for your feedback!