It is possible if you have enough equity. I am not sure what the loan to value restrictions are on taking money out, it's certainly less than it was 3yrs ago. Before you go pulling money out, you should talk to a mortgage lender and see if you can qualify for an FHA loan, if you're looking for the new home (owner occupied), you can buy it with just 3.5% down & get a seller to pay your closing costs. FHA allows you to receive these funds, also as a 'gift' from family or friends. If you're buying in OC or LA counties, FHA goes up to $729,750, in Riverside / San Bernadino counties to $500K
So, please explore this route before taking out another loan on your Inv. property & thus making a higher pymt on that property.
You can shoot my lender an email and ask about taking $ out on your Inv. property, ask them "I owe X on my Inv. property and it's currently worth about X, how much can I take out?" Send your email to DBaldwin@Pacific1Lending.com in the subject line just put "equity loan ?: Emily Knell" & you'll get a quick response.