How To Factor An Equity Pull-Out in Cashflow Calculation

[Lionel Johnston]

Hi Folks, 

We have a SFH that we are refinancing with an appraised value of about $350,000. We will raise rents again in a year but our calculations currently show only $22 in monthly cash flow.

Notes:

- 5% Cap-Ex, 5% repairs and maintenance, 2% vacancy are factored in. 
- For various reasons, we cover the utilities for this property. 

So, my question is, if we didn't pull out $75,000-100,000 this property would cash flow about $400-500 per month. So, the deal looks worse than it is since it only cashflow $22/month but it's also covering the interest on the $75-100k that we can use to invest in more properties. 

Should I ignore the fact that it's only cash flowing $22, as it is actually good since it includes the equity pull-out? 

What is your opinion?

Here is a link to the calculation: LINK 

Thanks!