Cash out Refinance OR ???

[Lawrence Paul]

Hello again everyone,

This question has been bothering me for quite some time now, so:

I have a one door condo flat on the second floor w/ HOA that currently cash flows about 400/month.

Purchased the property for $110,000 and the bank required $50,000 down (not dealing with this bank any longer).

I put roughly $7,000 worth of work into the property and the unit will need a new AC unit next year ($4-5,000)

5% over 25 years.

Current value is between $160-165,000 (comps in the same HOA).

Currently sitting on about $40,000 cash to cover any possible problems and looking for deals (dry in my area).

Have two identical units, plus another similar unit that I live in.

-- SO --

Should I do a cash out refinance on the property and lower my cashflow to roughly $100/month, but pull out roughly $60,000?

Should I do something else?

Am I missing a larger picture?