1031 or 75% refinance cash out?

[Robert Skruhak]

I have a duplex I am looking to possible do a 1031 in Austin TX. I have also been reading up on the BRRRR method so was also looking into doing a 75% cash out refinance. Here are some numbers below.

Purchased in 2015 for 260,000 (FHA loan)

Current mortgage remaining 227,000

Appraisal estimate= 385,000-415,000

Estimated cash out= 70-75,000

Which would make more sense, I think with the cash out refi could still have possible a $ 300.00 cash flow and around 100,000 equity left (25%)?

[Account Closed]

@Robert Skruhak I think the cash-out refi sounds like a good option for providing you funds for your next properties.

My two cents is that $300/month in cash-flow on $400k duplex sounds a little thin from a banks perspective unless you're factoring a high vacancy allowance or similar, while running your numbers. There is no set way that banks/lenders will lend on your deal with some placing more importance on LTV ratio and others who value cash-flow more highly. Shopping multiple lenders and/or multiple types of banks is probably good advice for you. Feel free to reach out to me if you want a little more detailed review on my bank's perspective. Best of luck to you.