Looking for advice for a rental property

[Kapil Sharma]

Hi everyone! New to BG and hoping that some of you can chime in on my situation.

I have a townhouse in Somerset county rented out to long-term tenants with really good rent. The property has never been cash-flow positive because I originally bought it for myself to live in and went with an aggressive 15-year mortgage with 3.375% interest rate and high monthly payment (which I could easily afford). Generating cash flow has not been important to me thus far because I look at it as a long-term equity play. At this point, I have built up roughly $150K in equity with 9 years of mortgage left. But now I am itching to tap into my equity to start buying some MF properties.

So my dilemma is how best to tap into the equity. 

Should I go with HELOC/Home Equity Loan and use the cash for downpayment on MF purchase?

OR should I refi? But with the interest rates where they are, I will definitely not get such a low interest rate again, especially on a rental property.

Also if I refi, what is the ideal mortgage term I should go for?

[Ben Sears]

@Kapil Sharma personally I would keep what you have and go HELOC/Line of Credit. Can you raise rent so that the property cash flows? If you refinance there's a good chance that it's going to cash flow even worse than it does now because you have what appears to be great terms.