Refinancing my 3 family to increase cash flow substantially

[Saverio Magliari]

Good morning BP community,

Approximately 8 years ago I purchased my first investment property (3 family). Not truly understanding the the various investing strategies, Cashflow wasn’t a huge concern. My goal at the time was to pay down the property ASAP, so I took out a 15 year loan. Since then I’ve paid down roughly 48% of my principle. I was also fortunate enough to lock in a low rate of 3.5% as well. After all my expenses are paid (principal, interest, taxes, insurance, maintenance, utilities etc.) the property currently cash flows $1350 per month. My gross rent is $3500 per month. I have roughly 7 years left until the property is paid off. My question to the BP community is regarding refinancing the property. If I choose to refinance the property my interest rate jumps to 4.625%,however, my payment which includes principal, interest, insurance and taxes will drop to $1170 per month (30 year mortgage) without taking any cash out. This would increase my cash flow roughly $1050 per month. I’m looking to invest in more properties within the next few years. Is it worth refinancing to increase cash flow or should I stay the course and pay the property off in 7 years?