Refi Cash Out or Keep Cash In?
Greetings,
Fairly basic question but I'm having trouble weighing the two. I want to refi my non-owner occupied duplex for a lower rate.(Current rate: 4.25%. Would hope to get it down a full % point). It cash flows very well and am considering cash out when I refi, the money which would be used to buy another investment property. The duplex would still cash flow even after cash out. My objective with rentals is to quit the day job sooner than later. So if, for example, my duplex mortgage is increased by $200 after the cash out refi, but a new rental property, bought with cash out $, cash flows $200/month would it not be simpler to just keep the money in the original duplex?
Just wondering how people more experienced than I weigh these two approaches.
Much thanks.