Refinance for equity

[Roger Devore]

Do I refinance fore equity or use cash on hand?

I have a property w/15 year (11 years remaining) loan est value 136,000. I owe 80,000. The rent covers mortgage/taxes/insurance/property manager but not incidentals. I'm looking to purchase another rental property but w/30 year loan. I have the cash on hand but my thoughts were to refinance the first home for equity, make it a 30 year loan, and buy the new property with equity.

Pro's:

- refinance will allow me to pull equity out and positive cash flow of $200 a month.

- purchase another property with a positive cash flow of $200 a month.

Con's:

- ill be 70 before paid off ... 

The goal is to grow asset base and monthly income.

Thanks in advance,