Should I cash out refi on my primary home to pay off my two rentals?

[Molly Plude]

Hello, everyone!

I'm having a delima here. Just a little background, we are big on long term and big on passive income. It's very hard to find good deal now a day. While waiting, we are thinking if we should do cash out refi on our primary home to pay off the two rentals since we have so much equity in our primary. Here's the math, if we do cash out refi on our home, the payment would goes up $700 more than what we are currently paying and of course the year term loan goes from 7yrs to 30yrs. The upside, we will be loan free and clear on both rentals and cashflow for both would bring in $1950/month. Of course these two rentals have very good interest rates, but if we want to invest right now, we won't even break even. So should we or shouldn't we not and why? In addition, what will happen to the tax write off since both properties are paid off? 

[John Morgan]

@Molly Plude

I did a cash out refi on my primary to buy 3 cash flowing SFR. I've also bought two rentals from a HELOC on my primary. I've leveraged my way to create 17k/month profit off my rentals from this strategy. I would rather put my equity that's just sitting there doing nothing for me, to use and make good cashflow. Plus I'd rather have 25 rentals appreciating over time vs just the first two I stupidly paid off with cash when I first started 9 years ago. Learn to leverage your way to wealth and get rich off rentals with hardly any of your savings. Put that equity to use and buy as many cash flowing rentals as you can. And "refi til you die!"