You are correct that putting 3.5% down on a fourplex likely won't cash flow after one year.

The most important rule is to have the cash flow of the new property be able to pay all its expenses, mortgage, AND the line of credit back.

What’s your primary goal for the cash-out refinance?

Hi KyleThe way most real estate for sale is priced these days there’s little to no cash flow after debt service with 25% down - borrowing a down payment would put the investor in a negative monthly position. 

Currently cash flows.

Our portfolio currently cash flows, but cash flow isn’t our top priority right now since we plan to use this portfolio to supplement our retirement in 12 years when I leave the Army.My biggest challenge is committing to an out-of-state market.

There is almost no scenario where a condo would ever positive cash flow while servicing debt, and very little positive cash flow with no debt.If your budget only allows for a condo, find a better place to put your money to work.   

Even though there is low inventory, interest rates are high, and many properties don't cash flow, look harder there are always deals, you just need to find/make them.

Purchase price: $250,000 Cash invested: $75,000 7 bedroom Padsplit property at 93% occupancy What made you interested in investing in this type of deal?

If you don't intend to do that right away then do the 20% and save the extra cash flow.