Refi cash out to scale up?

[Amable John Aguiluz XIII]

Hello All,

I currently own 4 properties (2 in CA and 2 in AZ). I just bought one of the AZ ones 3 months ago, so refi cash out is out for now.

My primary in Ca is worth $575k now and the loan balance is around $317k paying $2600 for PITIA (principal, interest, tax, insurance, HOA). The other CA condo is worth $350k and the loan balance is $145k paying $1350 PITIA and renting for $1600 to a family member ($1800 is market rate, but that's another story lol). The AZ SFR I bought last September is now worth $260k and loan balance is $157k paying $950 PITI and renting for $1200.

I spoke to my lender about refi cash outs for these 3 properties, and pulling out (at 75% LTV) about $250k would raise my primary residence payments by $350, second CA condo by $300, and AZ SFR by $155.

I have always been conservative and focused on paying the mortgages off, but money is cheap, so my thoughts are that my payments won’t go up that much and I can use that and some extra cash I have to purchase multifamily in AZ; maybe even an apartment complex. My latest acquisition’s PITIA is $1100 and rent is $1675 so that actually helps me break even on the cash out with potential for gains on the multifamily play.

Could use some advice from people who have gone through this situation. Thanks everyone!