2nd mortgage to pull out repair cost??

[Jason B.]

In October I purchased a rental property and put in about $10-12k in repairs. The property is now rented and I net about $400/month on it. The question is do I take a 2nd mortgage on the home to pull my $10k out. The payment is around $103/month for 10 years with total interest paid around $2,000. I'll still make a monthly net profit even with the 2nd mortgage.

Some things to note:

-I do not "need" the $10k at this time

-The 2nd will increase my DTI and potentially affect my approval amount on a 2nd prop later this year

-If I take the $10k out I need to re-invest this and make more then I'm paying in interest

-Refi is not an option as my 30yr fixed is only 3.5%

Or do I not take the mortgage and use my net profits to pay down my mortgage balance faster? the monthly income is nice but I do not depend on it. The house is in a flood zone so my initial intentions are to not hold this property long term unless the flood insurance premiums stay low with only minor increases YOY.