Help me analyze this refi option

[Paul Welden]

I'm considering doing a cash out refi to free up some capital to invest in other properties. Current loan offer is 75% LTV at 3.875% with $275 lender fee but paying 3 points.

Condo location is in Phoenix Metro area
Condo is owned free and clear
Current market value is $140k-$150k
Rent is $850 but going up to $900/mo in October
Credit score is 815 
 
Condo monthly expenses are:

$175 HOA

$70 property taxes

$20 insurance

I appreciate any thoughts or feedback you have to help me analyze this.  

[Guifre Mora]

Originally posted by @Paul Welden:

@Guifre Mora I'm wondering if others think this is a decent/good/acceptable cash out refi option. If you has this offer, would you do it? 

 Yes, 

it's a good rate, 

reasonable points, you have an offer from a lender witch it's a good thing. 

It gives you what you want-cash to buy another property-that the whole point.

Now you do need to consider it leaves you 30 bucks cash flow but it's up to you on how much risk tolerance you have. 

Now your follow up questions for the lender are: Pre-payment, Closing costs, the 200 buck is very weak loan cost, there is no UW, legal, etc. I would be skeptical ...