Refinance Strategy

[Brandon Addison]

Hello BP forum!

I'm beginning the process of exploring real estate investment as a means to create passive income, but I'm currently in the researching phase.  In attempting to learn about broader investment principles I have a personal question that I am currently mulling.  I want to know what things that I should be aware of in personal and future re-finance situations.

In my current personal situation, my wife and I purchased our first home in October of 2015 and have enjoyed a number of the benefits of home ownership. We also got what I believe is a phenomenal deal. Some recent comps (sq footage, neighborhood, quality, etc) in the area indicate the property value has increased nearly $100,000 since October (at the time of purchase other related comps were going around $50-60 more than our purchase price). 

Due to appreciation of homes in the area, I'm looking at re-financing to eliminate my PMI *and* lower my interest rate. Mathematically, it seems to make perfect sense. The re-fi would add over $400 a month in cash flow due to PMI reduction and the lower rate. The re-fi's I'm considering are no cost re-fi options (FYI: no official appraisal on the property).

Of course, I have interest in this as my personal home, but I'm also curious if this were an investment property what the best course of action would be to monetize the current "market" price of the property. Letting it sit would be inefficient, but I'm curious what investments strategies could be used in a situation like this.

Thanks for any thoughts!