Coop rental- Sell or Refi?

[Jared W Smith]

Hello All- I am learning the ins and out here on BP. 

I currently own a coop here in NY which is now rented out. It pretty much just pays for itself, not much cash flow. Purchased for $90k, owe $67k. Currently no PMI. I had a thought to refinance to pull money out for down-payment on a larger rental property. However because of all the trouble getting it rented (paperwork, red tape & approvals). I am more inclined to sell it and use any profits for investing. It wasn't the wisest purchase.

Trying to put together $40-50k for a down-payment for my first deal on another rental property. Thoughts?   

[Morris Cohen]

On the refinance side, it may be difficult to get the refinance through. Most banks won't lend to investment co-ops at all let a lone a cash out refinance. I have a couple banks that will (I am in the midst of doing one right now for a client), but they will likely cap the LTV at 60% on any cash out investment co-op refinance and the rate won't be great. Your best bet is probably to sell it in order to ensure you get enough cash.