Making a mistake with a cash-out refinance?

[Axel Scaggs]

I recently started the process of doing a cash-out refinance on my single investment property. It cash-flows at $700 a month. Mortgage balance is $130,000. Appraised at $357k, although past appraisals have been higher. The max amount they approved to be pulled out was $123k. This makes the property break even. I only have $30-40k though, so I’ve felt stuck with this single property.

I wanted to use the cash to do some fix and flips and in the rare event a BRRRR presented itself early on, go that route and then continue with fix and flips. The market I'm looking at has plenty of houses in the 30-50k range that could be fixed. However, I'm wondering if I should have simply sold my investment property and used the full $220k-ish I would have had then. Was my move probably the least effective method?

P.S.: I also did not enjoy the $18k in closing on this number. Insanely high from what I was expecting.