Quote from @Adam Bartomeo:Adam - Thank you for the thoughtful response and my follow up would be to ask when you would consider a property "maxed out".

@Kevin Sobilogreat responses. 

I hope everyone is well, I came here because I need expert advice from you guys, let me tell you my situation: I have a investment property that i purchased 2 years ago and is valued at 65k that does not have any mortgage and that is already paid off, I want to use that property to buy another one for down payment , the question here is: What is the best way to do it. a heloc or a cashout refinance and why. your response will be appreciated :)

Thank you for your response !

Thank you both for your responses. 

Great response, Dennis!

Is there any legal way to hold them at least partially responsible?

If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.

I apologize the the delayed response.

https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...Thanks for the response and for sharing the article, River!