How should I tap in to my home's equity?

[Grace Simpson]

Hi BP Community! I'm new here.

My husband and I each have a condo from before we were married. We don't want to live in either one and need a lot more cash for what we really want. We go back and forth over whether to rent, sell, and/or do a 1031 exchange because the goal is to have rental property and a new primary residence. Both condos will have capital gains over the deduction. 

Is it wise to do a cash-out refi? I believe we could lower capital gains that way, get some cash in hand, rent the property to cover the mortgage, and then have the option to sell/exchange as the market changes, but I'm looking for advice and am open to options.

Thanks, all.