Cash out Refi if I don’t need the money?

[Jordan R.]

Hi all!

I’d purchased a townhome as an investment back in May for 150k (3.375%). I spent about 20K fixing it up, and got a tenant in paying 2.2k/mo. Property is current CF positive at just over 1K/mo.

I had thought about doing a cash out refi, and started up the process. Property came in appraised at 195k, and so I can pull out 32K at a 3.625 interest rate, but this pushed up my P&I from 494 to 666.

I’m waffling a bit here…initially I wanted to be opportunistic and take advantage of the environment etc. but I’m not sure I want to buy another property right now, and wondering if maybe it was a mistake to pursue the refi?

I also carry quite a bit of leverage across my two investment properties (280k) and my primary (230k - but might sell this within a year and get a nice gain)

Would welcome the community’s thoughts! Thank you!

[Jason Wray]

What's the current rate on your primary and could you take the cash out on it for a lower rate in general? Rates on primary cash outs are around or under that quote so it may make more sense and you can go higher on a primary then a NOO rental.