Is this Re-Fi worth it?

[Laura MacDonald]

I am just getting back 'into the game' after a decade long (unintentional) hiatus.  I find myself second-guessing my decisions/strategy/reasoning.  Would love any experienced wisdom or insights, based on the following:
- I own 2 4-plexes.  Current loans about $190k each, current appraised as-is value about $825k each, current rate 4.5%
- I do not have w2 income and cannot qualify for a FMae/FMac loan
- Each building need about $50k in maintenance/upgrades which would allow me to increase rents about 40%
- My goals are cash-flow cash-flow and cash-flow; longer-term equity is also a goal

I have the ability to re-finance with the following (these are details for one of the buildings...I assume i could do the same on the other as well):
- 30 year fixed, 4%, $400k total loan amount (I could go higher but am concerned about the higher monthly payment eating into my cash-flow....not sure if I am being short-sighted on this??)
- The total cost of the re-fi will be about $17k (title, fees, appraisal, buy-down, origination, etc)

Here is my bottom line question....should i move forward with the re-finance? Those who are more experienced, what would you do?? Is the $17k cost of the re-fi worth it?? 

TIA!

Laura

[Laura MacDonald]

@Jaron Walling  Thank you.  I am not living on cash-flow, but would like to keep it open as an option for the relatively short-term future.  I have been out of the 'corporate world' for the last 15 years as I have raised my 4 internationally adopted children (2 with significant special needs).  So getting back in (with a W2 job) is proving VERY VERY difficult! My husband ran his own business for the last 12+ years which he lost recently, and he is finding the same thing....stepping back into the corporate world after so many years out is proving extremely challenging (and frustrating). 

Coming up with a strategy in this (very pricey) market is what I am having a hard time doing....any ideas or suggestions of what you would do with that equity (in addition to remodeling and getting up to market rents)?

Thanks for your time in responding.