Cash out equity to purchase investment property or...

[Tim Teachman]

Hello,

my wife and I are new investors looking to purchase our first investment property.

We have excellent credit and plenty of equity in our house. our question is should we refinance to cash out equity @ 5.1% interest and purchase an investment property cash? Or put down a traditional 20% down payment and finance the remainder? Or would it be better to leverage our equity and finance more than one?

Wife thinks cost of home refinance too much to make sense. cost of loan on primary home would outweigh potential income on investment property over 30 year life of loan. trying to figure out way that makes sense!

Any thoughts or advice is appreciated