Hey , yea thinking more on this, having other positions would be a tough sell.My strategy for substitution of collateral is to get better debt terms on an investment I want to buy.Ex.

I literally laughed through the phone at his suggestion, because I was broke, in debt, and in every way and unqualified borrower, and the lending environment in 2012 was probably stricter than it had been since the invention of the 30yr mortgage.

Eliminate debt, establish a budget, and save.

JeffWe lead a couple investor meet up groups in person and live stream about the Central Ohio real estate market.

Some people only want 10-20% of their outstanding lines/debt balances available while the other 80-90% to be in fixed rate notes.

Quote from @Dan Shallcross: Your PM should know the answer and be leading the way aggressively.

Knowing what you are capable of and/or having proper resources can lead to great deals in any market.   

The 2-3% points in extra cost are worth it if you plan on using as I described above because the use would be for a few  months at most and due to that short term use you can survive a rate adjustment up.But, if you have no plan to payoff the debt like when using for a down payment on a long term hold why pay the extra cost for flexibility and have the additional risk of the adjustable rate with the amortization looming when you can get a fixed rate second mortgage. 

The bank will make you leave 25% equity in the property - but you also still want the property to at least cash flow some - so be careful how much equity you pull out / new debt you take on.I would do a cost benefit analysis of what your actual gain is in cash-flow on buying a new property with a (currently) higher interest rate (if financing), versus just holding on to the current appreciated property and enjoying that cash flow.All the best!

The denominator in the calculation is your capital/equity and with no debt the return on your existing equity is low.