Refinancing & Cash Flow

[Leanna Nixon]

Hi! I am planning on doing cash out refis on 2 properties I own in Cleveland. Both were purchased around 5 years ago for cash & have both cash flowed & appreciated more I had anticipated. My estimated cash flow after refi’ing is going to be on the lower side & im wondering if I should follow through as I don’t want to end up in a negative cash flow situation. But since I’ve already done so well with cash flow & appreciation is this as much of a risk now? We also have enough income to cover in case they don’t cash flow. Curious about cash out refi-ing and when it makes sense & when it doesn’t. Thanks! 

[Jonathan R McLaughlin]

It was one thing to cash out refi at 3%, quite another at more than twice that. I’d be hesitant to do that unless there was no other way to raise capital. Sounds like your cash is doing good work for you, yes?