Cash out refi cost - Is this too high?

[Vaibhav Puranik]

Hi all,

I am planning to do a cash out refi on one of my properties in TX. The property has appreciated and I can pull out approximately $40K from it for my next deal. The cost of cash out refi (points, various fees, appraisal) is coming out to be $5000! I was wondering if that is the norm or not. This is my first cash out refi. To me it doesn't make sense to give $5k in equity money to ultimately land with $35K.

Please let me know what do you think. I am not desperate for money right now. I just finished one deal and I can wait few months for the next deal.