Cash Flow or creating Equity

[Austin Hoover]

Hi all,

Finishing up my first BRRRR.

I have created 33,000 of new equity on my first rental. I can pull out 26,000 on cash out refinance.

New mortgage will be 400 a month with taxes of 78 a month and insurance at 40. Rent is for 650 a month to  Section 8, with MGMT Fees of 8%.  I can't raise rents till October. Tenant loves the place.

New property I am offering on is listed for 100,000 with about 3,000 in repair costs. Interest on loan is 6% 20 YR  Arm. 25% down payment required.

House is a VA foreclosure 3 bed 1.75 baths in a B neighborhood.

The new location is tax assessed at 149,000. rents I can get about 1250 all said and done.  Taxes will be 192 a month with Insurance at 80 a month. MGMT fees 8%  New mortgage will be around $600 a month.

Is it worth not cash flowing my first property to gain equity in the other one?

I live in rural North Dakota.  I invest in an Air Force town Minot 1 hour away.