Refinancing rentals to pay off primary mortgage

[Wade G.]

I know this question has been asked over and over again but there are always new members with different viewpoints. To make this as brief as possible I have four SF rentals. Two are only around 65-70% LTV but the other two are around 40-45% LTV. They all cashflow and even after the refi each would CF $200 month. Currently total CF on all four properties is about $1,200 month. The way I am seeing it is from these four properties there is only about $400 left over from CF that I could spend or save towards other investments. The rest of the CF (about $800 month) is reserved for future repairs and vacancies. If I refi the $400 month would go away due to the higher mortgage principal but I could pay off my primary house and thereby free up $700 month (I know taxes and insurance are still due). So I go from $400 to $700 month extra to save for other investments, or add to an IRA, or spend, etc. I could also open a HELOC on the primary and when an opportunity arises I will be in position to buy it. Hopefully then be able to refi the new purchase and pay off most of the HELOC. I realize paying off the primary mortgage at 3.75% is a terrible use of money and that is a disadvantage. Also though, the ROE in the rentals is getting worse and the equity is at risk from an asset protection standpoint due to any possible lawsuits. In Texas, equity in our primary home is protected from lawsuits but the rentals are at risk. It should also be noted that if I did this I would still retain about 20k in a reserve fund for the rentals. I'm a firm believer in reserve funds.