Refinance for cash flow?

[Will Pritchett]

I have a rental that was bought as my residence about twelve years ago. Cash flow neutral after expenses. Value about 165,000.00 Purchased at 130,000. Owe 90,000. Will be paid off in 15 years as it stands. Trying to decide whether or not to refinance to increase cash flow.

Last year tenants paid down over 3k in debt for me despite the lousy cash flow. I naturally lean towards paying down debt for the eventual jump in cash flow when it is paid off. The other option is to refinance the existing balance to increase cash flow by maybe 200 dollars. Interest rate will probably stay about 5% if my numbers are right. I would roll fees into the loan probably.

Other pertinents: I have one other rental that we recently purchased (with better cash flow) and hope to own many more. I am teetering between these options right now. Any increase in cash flow would be used to purchase more rentals and build reserves. The numbers aren't huge in either direction but I would love to get some feedback to see this decision from different angles.

Thanks,

Will