To refi or not to refi

[Trina P.]

We have a property in Huntsville, Alabama that we purchased three years ago. It's cash flowing well and has enough equity to refinance and pull our roughly 14.2k for about 4k in closing costs(the breakdown of expenses are below). I'm not counting the prepaid insurance and prepaid taxes in that number since we have those funds in our escrow and will be transferring them over to the new loan if we refinanced. The est. APR is $135,000.

Debts to be Paid Off $80,885.00
Discount Points $3,016.24 
Appraisal Fees $500.00 
Credit Report Fee $13.75 
Undisclosed Debt Report $31.25 
Prepaid Interest $188.64 
Insurance Renewal $468.00 
Insurance Escrow Reserves $195.00 
Tax Escrow Reserves $422.00 
Title Fees $700.00 
Lender's Title Insurance $288.00
CountyTaxes $178.00 
County Recording Fees $137.50 

Total Costs $87,023.38
Total Estimated Due at Closing ($14,265.62) 

Essentially, we would be going from $28,700 invested to $12,800 invested. This increases our cash on cash return but lowers our monthly cash flow. These two screenshots are attached below. Here's my question. Is it worth paying 4k in closing costs to get 14.2k towards another deal? Or would it be a better value to hold off and wait for the property to possibly increase in value and take out more later? Or is it better to not refinance this property at all? 

[Bob Norton]

@Trina P. Are you using private lending to refinance in Huntsville or for buying your next property?  Private lending can be any terms that you negotiate.  Some private lenders don't require you to put any money down, that would be your choice.  Hard money lenders, on the other hand, have different requirements and may require you to put money down.

I still think paying that much in closing costs for refinancing for so little doesn't make financial sense.

I like @Shannon Wright's idea to get a line of credit on the house in Huntsville. You could also attend local REIA meetings and network to find private lenders that would be able to lend you $15k (or more) at a much lower rate than you would be paying to refi your AL property. Doing small private lending deals will develop into larger private lending deals as the lenders build a relationship with you and find out that you keep your promises.