Cash out refi advice?

[Rick Trevizo]

Hello everyone, hope you all are staying safe and in good health.

I need some advice regarding a cash out refi.

So I currently own a 4-plex in Phoenix and currently have a loan balance of $295k. My current rate is at 5.75%, therefore looking into a refi since it seems like the right time. A similar but smaller square foot 4-plex just sold about half a block away for $575k. So based on that comparable I should be able to pull out some equity.

My question to you all is, considering we are and( I’m assuming) we are in a recession. Should I just refi or should I do a cash out now and hold on for any potential deals in the future? The reason for the question is cause I’m not sure if this money will be taxed? Or should I wait to pull out cash later but may lose some of the equity if properties drop?

I think I might have answered my last one but would still appreciate any advice from some of you out there that have some experience in what I have just described. Thank you all in advance.