Cash flow vs. Interest rate

[Kenny Kim]

Hello, 

Currently I have $150 cash flow monthly from a rental property with interest rate 3.0%, and I would get >$400 cash flow if I do refinance (of course, higher interest rate for sure). What would you do? keep as it is or refinance for more cash flow with extended payoff period?

Thanks for your input!

[Timothy Hero]

You'd cash flow more at a higher interest rate? I'm confused, lol. It depends on the costs of the loan. If it's going to be $4k in fees, that's $4k you'll be playing + interest on it. If you're saying the cash flow will increase to $400/month after the refinance, absolutely do it.