Cash out refi for down payments on more property?

[Samantha Klein]

Hi,

I have a question. I have a duplex free and clear worth 75k and I have 40k in savings to put down on another duplex or 4 plex however I really don't want to spend my savings because it will leave me thin but I was wondering if I could cash out 50k from my paid off property and use 40k of it for down payments on other properties?

[Darren Budahn]

@Samantha Klein

If you're looking to expand your portfolio, I would definitely use your equity to do so.  You should easily be able to do a cash out refi and get about 70% of the appraised value by doing so.  If you want to scale, you don't want to have your equity sitting dead in the property.