Need advice about financing

[Amul Sutaria]

Hi BP'ers!

So I am looking at properties in the 70-90K range (in PA) that I want to buy and hold. Problem is, the family member that told me they would let me use their HELOC no longer wants to help.

OK, fine.  Time to get creative...

I have a primary residence that's worth about 450,000 (projected appraisal value) and I owe 327,000 on this property (mortgage).  

I spoke to a mortgage rep with the lender who i have a mortgage with, who told me if i cash out refinance on my primary residence, then i could pull out 22-26K.   I could use this for a down payment.    

Would this be a good way to go?   What other options do I have?  The rep told me they don't do HELOCs.  

Another concern is that if i cash out refinance, wouldn't that make my mortgage payments go up? I'm already stretched pretty thin over there...

Some guidance would be appreciated! 

CC: @David Ribardo