Cash Out Refi for down payment and debt repayment? Opinions..

[Javier Emilio Tirado]

Hi Guys! 

My wife and I currently own 2 STR properties and sub-rent 2 apartments to STR BUT we don't currently don't have a home for ourselves and our 3 dogs. We were moving between the homes as they were not rented but currently are mostly always rented and we want to leave that moving-around life behind. So now we would like to buy something for ourselves.

We have plenty of equity so I was considering a Cash Out Refi to cover the down payment ($80kish 20% Down) +20K minor repairs of a new home. 

My question comes in that we have around 100k in debt (mortgage not included) between loans and credit cards mostly things we used to fix up or improve our homes. All credit cards are 0% interest and loans are 5-6% interest. We tend to buy things (big ticket home items) with 0% Credit cards and pay them off in 18-20 months of interest-free time. This creates a bit of a heavy cash flow burden on us since the repayment of this 100k will be paid off in about 1.5 years. This makes our monthly payments in loans and credit cards around 5-6k a month.

So since i am considering Cash Out Refi of 100k for a new home why not just get 200k and pay off the debt? 

Refi would pay around $1200 monthly

New Home loan would pay around $2000 (which being STR people we would look for something we can house hack for at least $1500 a month)

As i see it this could free up around 4k of positive cash flow monthly which could be redirected into either other investments or more improvements on our properties but it would essentially mean more liquidity in our pocket faster. 

Question is. Is it worth it to get the extra 100k and commit it to a 30yr loan ? Or should we just push through this next 1.5 year and pay off our debt the old fashion way and wait 1.5 years to buy our home because adding another mortgage payment on top of this would make it harder on our cash flow. 

(take into account it can be mentality exhausting not to have a stable home with 3 dogs this is not just a financial decision but also for our well-being) 

And not renting one of the properties as an STR was an option taken off the table as they both generate too much. (We currently live comfortably with just STRs we have no 9-5s)

Let me know what you think! Would love to hear your feedback. :)