Jen,

I'm afraid I have to take exception with your idea that your home not being an asset. Property values have consistently appreciated over time and in some markets have consistently beaten the returns on most other investments. I paid less than 400k for my home in 2002 and today it would sell in this depressed market at more than 900k. For 5yrs that's better than a 20% annual return, and much higher on a cash on cash return. Most of my stocks I've held the same period or longer and yes, to take the equity I either have to refi or sell just as I do with any investment. I also get the benefit of the interest write-off. Real estate is a very good investment, but it's not the perfect investment.

Everyone isn't cut out to be a landlord and friends of mine that are will tell you it's not nearly as profitable as those selling the idea try to make it out to be.

If you do have a paid off house you have great peace of mind...most people can weather pretty extreme runs of bad luck if they don't have to pay a mortgage or rent...that's the biggest nut most of us have to crack...without that...most of us can handle nearly any downturn.
Take care