I'd say that is a personal question but I would not do a cash out refi where the fees make up more than 10% of my cash out amount, UNLESS, you need that cash immediately for a new deal where you will make substantially more money than the money lost, or you are also reducing you APR to a point where the interest saved will make up the fees over time.Also I just did a cash out for 50K where the bank I worked with had a low income neighborhood special and closing costs were only $500 bucks (lender fees, and title fees) so might want to shop around and see if you have any local banks that do something similar.

And it's true, for most homebuyers if they sell they are worried about finding a home they love and becoming stressed with the entire process.

If rehab is planned at 100k but is actually 150k you just reduced your profit.Id run worse case scenario.

Hopefully this will reduce the amount of leg work and credit checks for me.

On the other hand, also worried we won’t be keeping the property above water with rents reduced significantly.Still learning and know we will make mistakes along the way. 

Although the process for buying a home may sound simple there are a lot of hoops to jump through and having an agent that can guide or explain to you the process can alleviate some stress.

Getting a loan is stressful itself since the bank (ie underwriting) will be coming back periodically asking for more information. 

That means if the house was overpriced and didn't sell, the selling price could be reduced by my share and the money partner still gets their full share of the profit.

Some sponsors treat regular distributions as return OF capital reducing the original equity and amount of pref over time.

Kevin,Just based on the numbers you could take cash out of both properties and reduce both rates.