Cash Out Refinance For Capital

[Skyler Schumacher]

Hi BP,

I was looking to get some insight on a cash out refi. I currently own 1 property which is my primary residence. The property is worth roughly $400k and I owe $235k.

If I was to do an 80% LTV cash out refi, I should net somewhere near $75k. Would this be a good route to go to get started, or would you suggest a different route? Refinancing would also eliminate my PMI.

Also, if I was to go this route, would it be beneficial to pay off debt to free up cashflow? I would free up about $900/mo, but it would leave me with only $35k to start. 

Any input would be greatly appreciated. Thank you!