Cash out Refi to Rehab property

[Tami Abrams]

I currently own a property that I inherited. It currently has a tenant. The mortgage will be fully paid off in December 2018. It needs some major repairs. Ie. New roof, plumbing a total rehab. I am thinking a cash out refinance is the way to go. I will use some of the money for the rehab and the rest of the money to purchase another property. What should be my major considerations? What math do I need to ensure is correct? Should I use the buy and hold analysis and just leave out the numbers (like down payment) that don't apply?