I see you are in Seattle, James Dainard Cohost of the Bigger Pockets On the Market Podcast does local events and meetups.

@Nold R.there are really three options for you to do this. 

There's nothing left to cover expenses so you better have deep pockets to cover maintenance, admin, turns, etc.If you think you can quickly improve rents to a point that covers your expenses and pads your pocket a bit, then maybe, IF it hits your return threshold.If you're buying cash, then the mortgage is not a factor. 

Home 1- Bought at $166,000Year Bought- 2015Interest Rate: 4.375Remaining balance: $75,000Value- $321,000Home 2-Bought at $197,000Year Bought- 2020Interest rate 3.625Remaining Balance: $163,379.25Value-$283,000Home 3- Bought at $247,000Year Bought: 2022Interest Rate: 4.875Remaining balance: 226,434Value-$325,000  Based on the numbers you gave, sell home three, pay off home 1 entirely.

Quote from @John Mason: Karan Welcome to Bigger Pockets and I wish you all the best in your investing journey!!

I agree with the posts above, save money and make yourself someone people want to lend to.  35% equity with no money in your pocket isn't a good deal for a lender.  35% equity on top of a 25% down payment with 6 mo of reserves in your pocket is probably a much better deal for a lender. 

@Derek LeggettWelcome to Bigger Pockets.

I heard a guy on Bigger Pockets video give a formula to use to consider if you should sell: If your equity is more than 7 years of cash flow, then you may want to consider selling to get your equity out. 

So if someone tells you, it does not matter about liens behind you - it does.There’s one more ; the borrower has increased debt service and when it either turns negative or leaves nothing “in their pocket” they may lose interest in the property, decide to stop paying all mortgages, and put whatever income they can into their pocket until they lose the property to foreclosure or one of the lenders obtains a court order prohibiting such.   

I don’t want to do anything questionable and want to come out of pocket as little as possible.