Bill, don't for get about taxes if you sell unless you can do a like kind exchange. You will be reinvesting with after tax dollars. Pulling equity is tax free. The question is where to put it, if is less than the borrowing rate I like the equity getting appreciation and more cash flow. 60% LTV is good based on the numbers I have seen.
I ask the same question a lot but unless I have somewhere to put the money to get better returns I stay with returns I am getting. I also calculate in appreciation and if you can get in properties that will appreciation more then it may be something to consider but I agree with Eugene only you can make the call based on your personal goals. I also rework my goals and make sure the investments I make match my current goals.
Mike
