Seeking Deal/Strategy Analysis

[Brandon Elliott]

Hey BP community!

Ok so here's my scenario.  Without boring you with the details, I have a single rental that I could do a cash-out refi on.  If I do, I'll have another down payment.  Cashing out and buying another property would increase my cash flow by $35/month and leave about $4k in my pocket (for the next down payment, of course!).  It seems like it would be more risky to have a second property if I'm not also substantially increasing cash flow.  Can any of you veterans help a newbie out?

Thanks!