Rate and term refinancing for increased cash flow

[Benjamin Kroll]

I am planning to move out of my primary residence in the next year which was originally purchased with a 30yr fixed rate VA Loan. I currently have over 20% equity in the property and I am exploring my options on moving forward in REI properties. Currently if i rent the property after morgage payments, property management, and taxes I would have an estimated cash flow of $120 a month to save or use on repairs and maintenance. I am considering a rate and term refinance with the potential of increasing (up to doubling depending on interest rates) the cash flow with the intent to place that money into an additional investment. Does anyone have prior experience using a similar strategy? Does it pay off or is it simpler and more financially sound to take the equity now from a sale to reinvest? Any advice on refinancing and VA Loans is appreciated.