Looking for both sides of the "refinance out of my 15 year loan?"

[Adam Stroik]

Greetings BP,

I currently have a SFH in San Diego with about $250K of equity. I have 9 years left on a 15 year note. its is cash flowing $100 per month. I know there are two sides of this argument. do I let it ride for 9 years and then get a huge bump in income or cash out refinance into a 30 year and get that equity working, hopefully increase my cash flow a bit. I'm hoping to hear opinions from both sides. thanks all

[Lee Ripma]

If I had that asset I would take out a HELOC to buy value add MF rental properties in a cash flow market. Then I'd raise the value of the property, get the HELOC back through a commercial cash out refi and do it again and again. I wouldn't think about the cash flow on the SD property, rather I would think about that kind of cash flow I could create with the equity. But that's just what I would do!