Cash out refinance - what am I missing

[Nate K.]

Hi BP, I was reading a post the other day about dead equity and it got me thinking. I have a two family multi where I owe ~165k. Tax/insurance/mortgage is $1700/mo (flood insurance is a killer). I pull in $2500/mo - never had a vacancy since I owned it, building is in amazing condition... I may be raising rents bringing me to $2700/mo when leases end this year. I'm not sure how to value the building... Zillow estimates it at $280k but we all know that's a crap shoot. A cash out refi at 25% LTV would put 40-45k in my pocket which would allow a down payment on another building. Is there anything I am not thinking about?