Cashout refinance in BRRRR now with high interest rate

[Jason Sung]

Hi BP community, 

I bought my first fixer-upper and took a year to fix it up. I just rented it as Midterm rental and cash flowing well since there is no mortgage. Home is appraised about 450k. 

I am debating two options; 

1. keep it as MTR and save money to invest next deal. 

2. cash-out refi to invest next deal. Rate would be 7.5% for 30 year fixed. To be conservative, I am thinking of doing cashout refi about 200k. PITI would be about 2000 per month.

I am in my 40s and I have my W2 job and plan to keep working for a while. To grow my rental portfolio, I would like to take out some cash but I dont like the fact that I need to pay high interest rate. Would appreciate any advice. 

[Andrew Postell]

@Jason Sung congratulations on your first property.  When we analyze these types of questions there might be several things to take into consideration.  Some of those might not be able to be covered in this type of a setting but the main question - why do you need the money?  And if you do have a need for the money...then how would you get that money without this refinance?  There's more to it then JUST these answers but this is where we should start.