Should I cash-out refinance? (Cleveland, OH)

[Account Closed]

Hi, I am still new here and haven’t been able to find a similar scenario on the forums but I apologize if this is a common question.

I bought a two family home for $52k with 20% down 3 years ago and found out when applying for a mortgage recently that I can cash out refi and pull $12-15k out of my current house. Huntington will waive all refi costs outside of $500 in my neighborhood. I believe the loan officer estimated I can cash out $12-15k based on the estimated value of my house. I’ve put two new kitchens and baths in, new flooring and carpet, two water tanks, one new furnace and one newer secondhand furnace. I closed off an addition off the back of the house and my plans are to eventually turn it into a separate efficiency unit or studio.

It seems to me like it would make sense to do the cash out. What are some things I should consider when making my decision? I have some cash savings ($15k) and could add to that with the refi. I will either be buying a single family home for myself or another multi family that I may move into if the deal is right. 

My options for financing the next property are FHA, conventional, or using a hard money lender then refi. My long term goal is to have many cash flowing multi family properties. And I would much rather live away from my tenants but I'm willing to keep sacrificing that for now for the right deal or situation. Thank you for reading! Any suggestions are much appreciated

[Elise Marquette]

@Tom Clellen just keep an eye on your debt to income ratio. If you do the cash out, you create a bigger monthly obligation for yourself because you’re likely increasing your monthly payment. And I’m only saying likely because if the interest rate drops enough from what you’re currently paying to the new rate, it may not be that much of a difference in payment. I just don’t know what the LO quotes you. Anyway, the point is that if your debt to income is too high, it may be tough to finance your next home purchase because it could create too high of a monthly obligation. I’d touch base with your LO and tell them of your plans. Maybe have them run a purchase scenario after refinance just to get a ballpark how much you can spend on your next property to see if it’s in line with your goals.