Cash out refinance even if I lose little every month?

[Martin T.]

I'm in the process of refinancing an investment property I have owned for 3 years. The value has gone up significantly and I'm about to get a better rate too. I'm considering taking the max out that the LTV of 75% allows. I'll get more cash at closing to use for other deals, and to invest in general, but if I take out the max I'll also be about $100 short each month.

If rents continue to climb they way they have been here, and interest rates go up again, having that money at 3.5% and then only waiting a year or so to break even again seems appealing to me.  

Obviously I could take out less and have a LTV of 65 or 70% but the point of this refinance was to lock in some of those gains, and get cash at a low rate for other investments.

Would you do it? Why/why not?