Refinancing for better cash flow?

[William Miller]

We bought our primary residence a few years ago. Its our first rental and stays occupied (4yrs) no maintenance issues as it is a newer home with fresh everything and reserves already built up. Should I refinance?  Purchase price 117k at 4.75 property valued at 120k, Payment is 701, rent 860 after PM fee. Current loan balance 96k. I have 17k that I could pay the loan down to 80k.  My thought is pay it and refinance just enough to pay off old loan and lower my monthly payments. New rate 5.37 (based off a rental I just closed on.) Then use the CF of $260 (after keeping $50 to keep building the capx) a month to pay on top of the monthly mortgage. This would I think save me a ton in interest over the life of the loan and provide flex room for a down turn and give me more equity in the home faster. No immediate deals lined up and I will replace that 17k in 2 months ish.  End game is Flex room on rent, equity for future deals, not paying so much interest and maybe paid off much faster.  Learning So pick away!  

[Seth Ferguson]

If I'm following, you want to use $17k to paydown the debt, then refinance, to get $260/mo additional cash flow?

I'd much rather put that capital to work in another property...you mention your income will replenish it shortly. That's $34k in a few months. Buy another property instead.