Is a Cash out refinance a good idea in my situation?

[Alex Skeg]

I was recently passed down a property that has a return on equity of around 10%. The property is paid off in full. The logical thing to do should be to refinance the property and use the money for other investments.

The problem I'm having is finding another investment that cash flows me the same amount every month.

For example: this property cash flows me $4k monthly. If I refinance and pull a loan of $800,000, the debt service will eat away my cash flow from the current property and I can't find another property that will combine with the current property to cash flow $4k monthly.

Basically, if I refinance I will be cash flow negative from my current net income on the property.

Is it better not to refinance in my scenario?