Should I take out cash for more investing

[Jared Christensen]

I purchased a 3 plex a few years back and have been paying the loan down and value right now is worth $150k and owe about $60k with only $10k in personal money involved should I refinance this after only 3 years and take out the cash for more investing? Or wait because of new closing costs?

[Scott Schaar]

@Jared Christensen depends on your goals . Are you trying to pay down properties so they are free and clear ? Are you trying to gain momentum with more cash flow ? I'm refinancing my latest project right now . Pulling out 80k, which I'll then turn and drop it on three more properties that cashflow . The cash flow decreases from my property I'm refinancing, however it's replaced by the three properties I'm buying with that money . More then tripling my cash flow altogether . My advise is to not over leverage the property I never exceed 60% LTV when refinancing and I put them on a 15 year note . Thanks to appreciation, I can pullout almost that same amount in 7.5 years again .