Cash out refi to buy another investment property. Need advice.

[Andres M.]

Hi guys.  I'm interested in doing a cash out refi on an investment property I own in Florida to buy another investment property in the mid-west. The most I could get (based on what I think the Florida property could appraise for) is about $35k. Closing costs will be about $5k which will be taken out of the cash out so that would leave me about $30k to invest elsewhere.

I'm currently cash flowing $260 a month on that Florida property. If I do the refi, with the higher loan amount, my mortgage would go up about $80 a month so my cash flow would be reduced to about $180. But that cash out would serve as down payment for another investment property where I can cash flow at least $200 (hopefully more).

In my head the math tells me this move makes sense but I don't know if there may be other numbers that I'm not taking into consideration.

Would you consider this a good plan?

Thank you in advance for any input.