Should I cash out refi with interest only payments?

[Noah P Bonds]

I have a lender who has an interesting loan product - thinking about using it for a cash out refi. Loan terms: 40yr fixed, 5.375%, interest only payments are available for 1st 10yrs(that's the part I like). After that it's just a regular 30yr mtg.  I could potentially pull out $220k cash (which is 2x my initial money down) and only pay an additional $353/mo - if I do the interest only option. I don't plan to hold the property for more than 5-10yrs, but if I do, the current rents will more than cover the payments. It's also likely rents will keep going up here in Boise - I'm not too concerned about affording the new payment in 10yrs.

I really like the "4 pillars" of investing - this interest only option eliminates the loan paydown pillar and that is what I'm conflicted about. Should I stay put or take the money and reinvest? 

Thoughts?

[Chris Davidson]

@Noah P Bonds This strategy is great if it is the loan product I am familiar with make sure you are going to be holding/ not paying down more than you should to avoid the prepayment penalty. Which from your scenario looks like you will be good. If you are looking to scale I this is a great strategy. You can save up the excess cashflow for more properties or build it up for what ever. The only down side if you left life style creep happen and start living off the excess cashflow the market stays flat and you didn't have any principal paydown during the period (I don't see this happening). 

If you want to bounce any ideas off each other shoot me a DM and if your in Boise could grab some coffee and dive deeper into it.