Cash out refinance to fund fix & flip

[Riley Hinshaw]

I would like some advice on this, and would like to know if this is a good idea or not. My property is currently worth about $445k. I owe $80k on it after doing cash out refinance few years back to update the house with floors etc. The current interest rate is at 4.5%. So I want to refinance to take advantage of the low rates right now and save a lot on interest. Since I have a lot of equity in the home, I figured now would be a good time to also get all of the equity I can since my house is worth more than it ever has been and at its peak in value. So my question is, would it be a good idea to to use money from a cash out refinance to cover the costs of a hard money loan to purchase a fix and flip investment? I have a hard money lender who accepts 10-15% down depending on the deal. With the cash out refinance I could easily afford the down payment and fees for the loan to cover the cost of a decent flip property, so would it be wise to take advantage of this opportunity?

any advice would be greatly appreciated! 

[Jaron Walling]

@Riley Hinshaw Congrats on your success so far with real estate investing. Tapping equity with either a refinance or HELOC is a good idea, but having an exit strategy is just as important. What was the original goal when you purchased it? What type of investor do you want to be?

You already did one cash-out ReFi and made updates to the property. Why repeat this process and give the bank more money when you could sell at a profit? Assuming it's a primary home it could be tax free gain that you could roll into another deal.