Cash out refinance or wait for more appreciation?

[Daniel Tisdale]

Hi,

I have a property in Austin, TX that I just turned into a rental property and I have about 200K in the property. I am considering pulling some money out and either holding the cash until I find another property or just have extra cash on hand. My hesitation is wondering if there's enough equity to make a cash out refinance worth it as well as potentially waiting a year with how crazy Austin's market has appreciated. I am only 1 year into the 30 year mortgage at this point.

Any advice on whether or not this seems like a good strategy or if I should wait a little bit longer?

Thanks,

Daniel

[Ryan Kelly]

@Timothy Hero this has to do with residential refinancing in Texas, which is written into the Texas Constitution. They are called Texas Section (a)(6) mortgages, or cash-out refinances based on Fannie Mae and Freddie Mac guidelines. I misstated 75% equity must remain, it's 80% according to the guidelines. Commercial mortgages likely don't apply to this section. 

https://themortgagereports.com...