To REFI or not to REFI?????

[Sean Tippens]

So, the question is should I refi or just take out a loan to get the money to start our next rehab property.

Basically, I owe $27k with 5.9% on my current mortgage. I have gotten a quote for a refi with an interest rate of 4.7% and 75% LTV. If my appraisal is estimated at $85k, then I could walk out of the deal with $30k. This would bring my monthly payment up some and decrease my cash flow from $350 to $175. Is this a good plan to go through with? Is 4.7% a good interest rate? Should a potentially consider taking out a traditional loan to get the money for my next rehab budget? Should I be this worried about decreasing my cash flow?

Any advise is greatly appreciated!!!!