cash-out refi into higher rate

[Charlie Fullerton]

Would you do this?

Rental Property Value:  $900k

Current Mortgage:  $467k,  4.1% - 30 year fixed @$2,317 Monthly P&I

Current Cash Flow:  $3,700/month (~41% margin)

New Mortgage: $630k  5.4% - 5 year Lock @$3,900 Monthly P&I 

New Cash Flow: $2,100/month (~21% margin)

Additional Interest per year - ~$15,000

Total Interest on cash-out: 10%. . (70%LTV = $160k cash out)

Can't find HELOCs on rentals right now. I mean that's a high interest rate to beat to justify the pull.  That's approaching private lending rates.   Would need to get 20% return on new investment to really make a significant bump in cash-flow.  I typically like to get about 12% return.  

Looking at ways to leverage equity to scale without having to give up the low, long-term fixed rate on the primary. Thinking private money and BRRR may be the more efficient way to go at this point. Could use this property's equity to secure private lending and then free it up after stabilization.

Thoughts?