I know I know there are few posts about this topic but wanted to tell you about my situation and see what you think so here we go. 

I own my personal property worth 575K and mortgage is $365K. I own a rental property outright and rents for $2200 a month. 

This is my Idea.... I can do a cash out refinance on my rental which would give me 250K in cash at 6.5% for 30 years with payment of $2185 but my rental income will pay for that. Then I turn that 250K plus $115K from my savings to pay off my mortgage which will save me in total $67K in interest. And then since I love real estate I would get a HELOC against my home which is $460K and continue to flip with those funds.

Thanks for your input 

@Kevin Aljic   First of all, what is the interest rate on your primary home?  I'm guessing it's likely pretty low (<6%), which if that's the case that is an incredible amount of risk exposure you would be taking to pay off a low interest loan. 

The other thing is based on your numbers of $2200/mo in rental income, if you refinance your rental property and have a $2185/mo payment you will be refinancing into a negative cash flowing asset.  Taking into account vacancy, cap ex, maintenance etc. you will have no cash flow and that property will cost you money rather than make you money which is never a good thing. 

What about the possibility of just using a HELOC on your home now for additional funds? If you need access to more cash, could either look for a hard money lender or pump more equity into the home via overpayments for a year to build up the equity to use for a HELOC.

I agree with Scott on not maxing out your rental.  If you want to flip with the money, use your savings and some money from the rental.  You have a huge savings and rental income from a single rental.

What would the interest rate be on your HELOC compared to the mortgage? I don't know why you'd take out one loan for another unless interest rates are different.

@Scott Passman thanks for the reply. My thought process was not so much of gaining cash flow from my rental instead saving the interest on my primary and the only reason why the interest is 67k because I’ve been paying additional 2k a month towards principal. If I stopped the 2k addtl then interest would be above 100k... hope that makes sense

My goal is to sell the rental in 5 years which I would receive about 100k after all the expenses etc.. and the money saved not having a mortgage payment which would put me right around 300k in 5 years. That’s without any new deals I close on. So all that additional money in bank account plus payed off mortgage not sure if I would be making a mistake. Still thinking about it