Should I do a cash out refi?

[Nathan Shankles]

I am currently in year 5 of a 30 year mortgage on a SFH rental property. The rate is 3.625% and it cash flows $325/month. I want to pull out the equity (according to my lender about $40k after all is said and done) with a cash out refi at 4.5%. After the refi, the property will cash flow about $150/month. I plan on using the cash to invest in my next rental property. Do you think I should refi? Looking for some experienced opinions/advice.

[Andrew Postell]

@Nathan Shankles 100% agree with what @John Warren stated.  If you are going to Tahiti...then no, do not refinance.  But if you can make more money on that property then there is a case for you to do it.  For me, my "cash flow" is my job.  My job pays my bills, groceries, lifestyle, etc.  And I have about 30 more years of working.  So right now, I want to acquire properties.  If I don't cash flow very much on my properties...that's fine.  Because that what my job is for.  My idea is that when I retire in 30 years, if I have A TON of properties that are paid off....well that would be an excellent retirement.  Imagine having 30 properties all paid off when you are 65 years old.  If they earned $1,000 each...that's $30,000 per month?  So continue to work that job of yours, acquire properties smartly, but keep trying to acquire them.  Hope all of that makes sense.