2nd opinion on rental property

[Henry Chen]

Hi BP family, First post here, been enjoying the discussions, lots of great stuff! Want to get some opinions aside from my mortgage guy. I have a 2bd condo in Concord CA free and clear, current comp is ~250k, rents for 1600. Thinking about taking some equity out for others investment properties but my mortgage guys tells me condo+investment property+cash out refi is frowned upon and results in higher rate. Any thoughts? I see many discussion on condo units here. Is townhouse in the same category? This was my first investment property and condo was what I could afford with cash. My second thought is to sell and do a 1031 exchange out of state. Your opinion? Thanks Henry