Would You Refinance? My Rental Scenario

[Ben Sears]

So I've been toying with refinancing my rental property and I wanted to solicit a few opinions. Here's where I'm at and where I'm trying to get to. Would you force the appreciation and refinance or keep it as is?

Your goals and story: Goal for this property is long term buy and hold. I have a long time renter (13 years) who has no intentions of leaving. I purchased this house 12 months ago after looking around for some other investment properties. This is my first buy/hold but I have lots of experience flipping houses in my area. 

Type of property: SFR, 960 sq ft. 3 bed 1 bath. Baseboard heat and window units.

Location of property: 23966. Rural area but 10 minutes to downtown shopping, schools, etc. 1/2 mile from major highway.

Purpose of financing: cash out refinance. Current P&I is $312 @ 6.375%

Type of financing sought: Undecided but probably another conventional mortgage

Current or prior ownership of real estate: Own this property and my personal residence. Have an LLC but both properties are under my name. Also partially the reason for the refinance as Wells Fargo will not transfer the mortgage to an LLC.

Occupancy: investment with traditional long term leases

Value of property at present and/or your offer price: $ Appraised at $55k. Purchased for $50k + ~$3k in closing costs. 

After repair value: $63k-$65k. I would like to invest approximately $8k in capital expenses before the refinance. 

Anticipated or actual appraisal issues: no, yes (what?) None

Current rents per month: $ 575

Fair market rents per month: $ 600

Down payment or equity: I have approximately $14k in equity at the moment

Source of down payment funds, if applicable: 

Income Source: W2

Gross monthly income (optional): $

Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: $

FICO: Excellent

Credit issues: None

Additional details:

So would you refinance it and cash out or not?