Should I do a cash out refi for a future rental property?

[Danny Farrell]

Hey BP Friends! I bought my first duplex almost 2 years ago, and am currently house hacking. The rental unit pretty much pays my mortgage, and I've built up some decent equity. I've also accumulated a lot of credit card debt with renovations, lawyers, and a tenant from hell. I'm looking to do a cash out refi to go from a 10-1 ARM to a 30-yr fix. I plan on keeping this property and using equity to buy more in the future. My mortgage bank is offering a no cost loan (cash out refi) where I would take out money to pay off all of my credit card debt (80K) and have an additional 88K at a rate of 3.625% 30 yr fix. Ideally, whenever this next recession hits, I would like to have some cash to buy something on sale. I can also always do a HELOC in the future as well, since appreciation in usually on my side here in LA. Does this make sense, or does taking out the extra 88K seem like a poor plan? Any suggestions would be appreciated.