$174k / year in cash flow vs $730k cash out and $100k / year cash flow

[Alex Stariha]

Hey everyone I'm on the fence on one of my current deals on weather to stick with the high cash flow or cash out refi to invest in the next deal.

In short I purchased a 32 unit property last February with a monthly rent roll at the time of closing of $30,200/month. At this time I've raised the rent roll to $42,000/month.

Current Bank Debt

5 year fixed rate term @ 4.25% 25 year amortization with maturity date of January 2027

Net Cash flow after debt service $174,520.00

Loss to lease $5,104.00/month (will chip away at this on a monthly basis)

Agency debt refi (freedie)

Cash out $730,000.00 and own 1 outlier 4 unit free and clear (value of outlier $450,000.00)

10 year fixed rate term @ 5.85% 30 year amortization

Net cash flow after debt service including the paid off 4 unit $104,137.16

Loss to lease $5,104.00/month (will chip away at this on a monthly basis)

Looking for some input from other multifamily investors.

Thank you!