How to pull out equity?

[Andrew Magoun]

I currently have 9 units spread over three properties and am under contract for adding a duplex. All told, there is about $400k in equity built up between the three properties. I'd like to be able to tap into that. 

Here's the tricky part: All three properties have private loans with interest rates under 3% and very good terms. What's the best way to tap that equity without drastically increasing my borrowing costs? Is that even possible? Is it worth it to even try? Thanks in advance for the advice.

[Steven Accardo]

Hi @Andrew Magoun 

The way to be able to draw on your equity without changing the terms of your current mortgages would be to take out a HELOC or 2nd mortgage. That would allow the first mortgage to remain as it is.

If you can't get a HELOC or 2nd mortgage, then you will have to do a cash out refinance to draw on the equity. In that situation, you will have to weigh out the benefits of having that cash available to you versus changing the terms ( potentially higher rates/higher payments ) on one or all of those properties.