How Best to Maximize Cash Out from High Equity Triplex

[Greg San Martin]

I have held a triplex in Berkeley since 2002. It was the third property I purchased. It has about $2 million equity and a $550K principal balance. It is like a very extended BRRRR. I am finally ready for the refinance step (with beaucoup cash out) but have a somewhat unique problem: too much equity. Admittedly, not a bad problem to have.

The first mortgage broker I spoke with told me a cash out jumbo was not practical at this time, and that under a conventional refi, the most I could cash out would be $600K (at 44% LTV). I was hoping to cash out about $1.3 million (at 70% LTV). I want that other $700K or more.

I think conventional FHFA loan limits are specified here:  http://www.loanlimits.org/california/

My plan was to cash out and start investing in out of state rental properties.  I also co-own a nearby single with siblings.  My share of the equity is about $500K.  

Aside from selling my triplex via 1031, what are my options for maximizing cash out? Are there any clever ways to liberate my equity as cash? Condoing is difficult in Berkeley - has anyone put a "C" into BRRRR?

My appreciation in advance for your responses to this, my first post.