Cash-0ut Refinance 500K Cash back opportunity

[Rob Mudd]

Hi fellow investors. I purchased an 8 unit apartment building back in May. Thank-you Bigger Pockets! I used a HELOC to close. I have since stabilized the property. I approached a broker about refinancing the property and freeing up my HELOC. It was suggested that I amortize the property over 35 years on a ten year term to take advantage of low interest rates. Here's the surprising part. Turns out I bought the property CHEAP (Thanks Bigger Pockets) and using a 5 Cap rate I stand to take $500k out of the property and completely pay off my HELOC.

Great news right! Not so fast! I have spent my life being averse to debt so I am struggling with this scenario. On one hand I would love to take that cash and buy another property and on the other hand I wonder if I would be better paying this property off quicker and enjoying a debit free asset.

I have been watching Robert Kiyosaki, Dave Ramsey and Grant Cardone to try to reset my thinking. Has anyone else struggled with this problem/opportunity.

Thanks so much and happy investing!