Refinance to pull equity out?

[Brandon Knight]

Hello,

I am a new investor in real estate and am trying to figure out the best route to go in how to scale and own multiple rental properties. I currently own a Single-family home with a ADU that brings in $1,100 a month. I just purchased a property out of state that will be rented in the next few weeks and should cash flow $500 a month after expenses. I had to put more money into the rehab than expected so I am low on cash for the next 20% down. I have about $150,000 in equity in my single-family home with an ADU with an interest rate of 2.6% with no PMI.

My question is, should I refinance my home and pull out the equity to have cash on hand for the next property? Will getting a worse interest rate not be worth the cash equity on hand? I have a full-time job that allows for a flexible schedule and have considered becoming a home inspector to gain more cash faster to invest and scale the snowball faster. Not sure if that is a viable option that is practical and worth the effort?

Thank you for any info or tips! It is greatly appreciated!

Brandon