Cash Out Refinance

[Ryan Redmond]

Hey, everyone. I've brought this topic up briefly before, but never with the angle of refinancing my home. I owe about 60k on the house but the house is valued at 100-115k based on current upgrades. I also owe about 20k in non-mortgage related debt. 

What I'd like to know is if it'd be prudent to take out about half of my equity to pay off my current debts? Doing so would free up over $500 extra every month to save for future investments. Besides the relatively small fees associated with a cash out refi, it seems like it'd be a good idea. Am I missing something? Has anyone here done this successfully and if not, why not? 

In case it's relevant, I plan on either renting or selling the house in the Spring. If I end up doing a cash out refi, it'd be better to keep it as a rental, correct?