Have equity, and looking to invest

[Daniel G.]

I'm a Utah native living in West Jordan. I have been noticing the crazy market lately, and also the great mortgage rates.

If I did a cash-out refinance right now, I could get around $200K to $230K from my equity, and could afford the new monthly payment even with no rental income (for the short term).  It seems like a great time for such a refinance to lock in low rate.

My father has also retired and is willing/wants to help me out, and is considering putting $100K to $150K of his own.  I trust him implicitly.  (The real question is, should he trust me to know what I'm doing... )

I don't think mortgage rates will be going down, only up.  So I'm willing to do the refi and sit on the cash from the refi for 4-6 months while I learn what I need to know and look for the right investment.  Unless someone tells me I'm nuts for that.

The thing I have no idea about is if this is a good time to invest. It seems the prices of properties in the $250K to $400K range (which I'd think would be good for rental properties) are quite inflated right now, even more than the high end of the market. I'm worried that rental properties at these prices that can turn a reasonable profit/ROI compared to purchase price might be few and far between. And - will I pick a good neighborhood?

So, I have a lot to learn.  

• My main question right now is - is the cash out refinance right now a good idea?
• Second question is - If I'm serious about investing, is now a reasonable time to start learning with intent to invest in the next 6 months?

Thanks in advance!