Smart to cashout & buy another or not???

[Jamie Ross]

Hi all, I'm interested in perspectives on my current scenario: I have a bank willing to do a cashout refi on one of my investment properties. HOWEVER, the cash after closing will likely be enough to buy one premium (turnkey) or two low-end properties. Meanwhile, I will lose my margin with the refinanced investment property (from $400/mo profit to $50). So essentially, I would expect to break-even with my margin (after acquiring a 1-2 new properties), or in other words my profit would be about the same as if I didn't refinance at all. I'm not sure if acquiring another property with potential vacancies/tenant liabilities is the right thing to do or not. Any advice is GREATLY appreciated!