To refi or not refi 60 days after purchase

[Peter Eberhardt]

So, to humor myself today I opened one of those common mailer advertisements to see what crazy low rate they wanted to push me on my condo for. To my surprise it was actually for a 4plex that I just purchased less then 2 months ago. They move quick. The numbers actually looked intriguing so I went online to punch in the pre-screened offer code and got connected to a loan officer. 

My goal is to buy as many units as possible in a short amount of time and leverage as much as possible. I am offered a 80% LTV cash out refinance (I put down 25% on the 4plex). That 5% plus the lower rate and I'm told I can actually get about $9k in cash back and come out with the same fixed monthly payment and the same term. It sounds like a win to me, but I also have to pay $14k in points and fees that will be financed.

The way I see it, at the end of the day I have $9k cash in my pocket and paying the same payment amount of P&I. That $9k can go directly towards my down payment for my next place and would be in line with my goals of leveraging as much as possible. My tenants are going to be paying down the loan and the extra $14k that I had to pay for the refinance. Am I missing something here, or with my strategy is this a no-brainer? 

I have never refinanced before so I don't know if you typically would wait a little bit to refinance to get more appreciation (but rates will go up in the future), or should I be turned off by financing another $14k into the loan just to get $9k in cash back?

  

Here are the numbers: My current P&I payment is $1,707, which is a total loan amount of $386k at a 3.375% rate.

My offerings are: 

Option 1 - 2.999% - 30 Year Fixed - Cash Out - About $8-9K back

• 2.999% Interest Rate with 2.87 discount points (discount points are a pre-paid buy down on the interest rate over the life of your loan)
• Loan Amount $412K (max cash, based off of $515K property value. If property appraises higher, we can take more cash out)
• $1,736 / month (principal and interest)
• About $8-9K Cash Back (with all fees below and estimated escrow reserves financed in)
  • $11,824 Discount/buydown Points
  • $1,295 Underwriting Fee
  • $920 Title and Escrow Fees
  • $175 County Recording Fee
• $530 Appraisal (if required, is the only upfront fee since the appraiser is a 3rd party)

Option 2 - 2.599% - 30 Year Fixed - Rate and Term Refinance (No Cash) - Lowest Monthly Payment

• 2.599% Interest Rate with 3.37 discount points (discount points are a pre-paid buy down on the interest rate over the life of your loan)
• $1,625/ month (principal and interest)
  
• Loan Amount $406K (with all fees below and estimated escrow reserves financed in)
  • $13,682 Discount/buydown Points
  • $1,295 Underwriting Fee
  • $920 Title and Escrow Fees
  • $175 County Recording Fee
• $530 Appraisal (if required, is the only upfront fee since the appraiser is a 3rd party)

Option 3 - 2.799% - 30 Year Fixed - Rate and Term Refinance (No Cash)

• 2.799% Interest Rate with 2.075 discount points (discount points are a pre-paid buy down on the interest rate over the life of your loan)
• $1,647/ month (principal and interest)
  
• Loan Amount $401K (with all fees below and estimated escrow reserves financed in)
  • $8,321 Discount/buydown Points
  • $1,295 Underwriting Fee
  • $920 Title and Escrow Fees
  • $175 County Recording Fee
• $530 Appraisal (if required, is the only upfront fee since the appraiser is a 3rd party)

Thanks for your opinion!