Quote from @John Davey: Id appreciate any help, as ex. if i take out say 100k home equity loan and use 50k each as down payments/cloing costs my understanding is i cant deduct the interest?

If I got a home equity loan for Property 1 and used the proceeds as downpayment for Property 2 and then got a 2nd loan for the remaining 75% purchase price for Property 2, when I sell Property 2, can I use the Property 1 loan as part of the cost basis for computing Property 2 capital gains?

However, your issue would be lack of equity.

I will explore the refi avenue to access the equity.

I too live in Marin, and feel it is a solid long term market for apprecaition, and utilizing the power of principle reduction.When it comes to refinancing, figure out what the loan costs will be, then divide that buy the monthly savings with the new loan in order to determine how long you have to maintain that loan to break even. 

If you use a DSCR loan you could maximize the equity you could take out while still breaking even on the mortgage + taxes + insurance.

Rates are high, usually in the high 8s or low 9s, and you may pay 2-4 points on the loan. 

To access your home equity without selling, you can explore options like a home equity loan, a line of credit (HELOC), or a cash-out refinance.

Some considerations (in no particular order) are: What return on your equity are you currently getting?

@Vinny MuliIf you have equity built up, can you do a cash out refi?