Basic question about cashflow and refinance.

[Dario Miles]

Hi there,

I'm brand new to realestate, haven't made any purchases aside from my current main condo my family and I bought a long time ago.

I currently live on my own in the condo.  The mortgage has $96k left on it, it's worth around $680k.  My monthly cost (mortgage, interest, prop. taxes, condo maintenance) is $2700.

I could rent the place out for between $2800-$3000.  To me that's not a big enough margin.

However, I could cash out refinance, take out $100k equity in cash, and end up with a new 30 year loan for $195k at ~3%, with a payment of around $800 a month.

That would lower my ownership costs down to around $1,900, which would give me a healthy cash flow even if I rented at the lower price of $2800.

I would then use the $100k as a downpayment for my own residence.

This seems like an obvious step to me.  Is there anything that I am not considering here?