My first refi, take what I put in, or go BIG!? (into debt?)

[Philip Johnson]

I have 5 properties.  I've done 1 a year, rehab to rents.  I'm doing my refi cash out on the first property I bought.  Should I just get out what I've put in (down payment + rehab) or should I take out more? I will be using the cash to purchase a nasty property that will need a full rehab.  

[Jerry Padilla]

@Philip Johnson

If you intend to keep purchasing more properties, than I would say pull out the max. cash so you can have it on hand for more properties. You don't want to be short on cash and have to refinance the property again in a year or two and pay another set of closing costs. It may hold you out a little longer before having to cash out refinance another property as well. If you are going with conventional financing - you are limited to 10 financed properties, so it is best in my opinion to pull max cash out on these, before going portfolio or commercial - since these typically have higher rates than conventional.