Cash Out Refi + Invest

[Ricki U.]

I I was hoping to get some good opinions on my friends situation. They are sitting on a lot of equity in their brooklyn apt. They can get a cash out for the max chase will give out at 3.25%. 

Would you take that out and use as down payment on a multifamily? Preferably like 20-30 units around 2mm. Does it make sense given cap rates are around 4.5-6% ? 

If You put money in stocks, need 6.5% . But real estate You can depreciate assets to reduce tax hit. What markets can You find that large multi family turn key generating 8-10% cap rate ?