brrr.. refi amount??

[Adam Drummond]

almost finished with my first brrr property.  i own it outright, and when it's finished it will appraise at close to $135-150k.   would you take out the max amount when refinancing, or play it more safe??  my initial thought is to only cash out 50-60k to keep my loan to a minimum, and hopefully pay it off quicker.  however, if i cash out more money, then i'd have more cash to immediately invest.  thoughts on one way vs the other??  thanks for the input.

adam

[Stan Sugarman]

One of the Atlanta area gurus  always preached borrowing as much as possible in the years leading up to 2007 crash. For 4 years his properties were being auctioned off at foreclosure Tuesday in Dekalb. He lost everything he built in a lifetime of real estate investing due to negative cash flow. Worst case on maximizing cash flow is you miss out on a few deals but the flip side is leverage maximizes your losses in the downturn if you cannot afford to service the debt load.