Is this a bad time for a Cash out Refi?

[Patrick Chafe]

Hi BP Community! 

I am looking for any advice someone may have for my current situation, thanks for any help!

I own a SFH rental in Peabody, MA which has appreciated quite a bit this past year. Right now the LTV is approximately at 65%, and it cash flows a little more than $700/mn (I manage it myself).

Question: Is it to risky right now to do a cash-out refinance for approximately $40k-$50k and bring the LTV to 75% in this current market? I would like to cash out now, before rates start increasing again to have money ready to buy more real estate, especially if the market dips. I have been reading a lot on the current economic situation, the housing market, and keeping up with the forums on peoples opinions of whether or not the housing market will crash, or possibly a small dip in the market as the rates start to increase. I am learning a lot from reading the forums but it hasn't necessarily helped me make up my decision, and if anything, has made me more uncertain. My concern is that if I do the cash out refi, it will likely put my mortgage around $1900/mn, and the property rents for $2750/mn which still doesnt seem bad. However, if the market/economy were to crash 20%(including rents) it would likely rent for $2200/mn and I would essentially be breaking even, or loosing money if a big cost expense were to happen. And if there was a crash and for some reason was forced to sell, I would likely only break even. I know a HELOC is an option, but that doesn't seem feasible right now with interest rates on the cusp of rising.

So, the main question, is a 75% LTV in this "over priced" market to risky?

Thanks!

-Pat