How do you decide when to do a cash-out refi

[Bryan Rome]

Hi everyone,

I am curious as to what other investors do with their equity in their properties. I have about $60K in equity on my first property in Avondale/Irving Park boarder in Chicago, but it isn't cash flowing (principal, interest, taxes, insurance and assessments is equal to my current renter's payments). I have a great 15 year interest rate (2.8%) and know I would lose that to a higher 30 year, however, rates are really low, which means I can cash-flow with a refi. What are the pros and cons of a cash-out refinance that you have experienced?

Please share your thoughts or experience. Much appreciated, BP!

[Robert Tucker]

@Bryan Rome

Its always wise to cashout if you have another property lined up to invest that money in to increase overall cash flow and profitability.

Just pulling money out to do it, and sacrificing current cash flow I have seen to have bad results with my clients over the years... money seems to dissapear when it is just sitting in your account.