How much to cash out?

[Tj M.]

When you do a cash-out refi how do you decide on how much to take out? I am wrong on thinking the more you cash out the less cash flow you have for that property. Do you just try to make it up on the next property?

[Brent Coombs]

Originally posted by @Tj M.:

Robert Schumacher To increase cash flow so I can retire early.

 Increased cash flow (now) will not help you retire early, unless you re-invest it immediately!

Which means, taking out as much as allowed (now), even though it decreases immediate cash flow, the loan itself gives you the maximum cash back in your pocket - immediately!

But, that really only helps you if you've found almost-immediate deals to invest in!

The trap is: you'd have all this money, so you'll think you'd better spend it on some/anything!

One thought is: don't apply for the refi until you've found the deal that's too good to pass up!

Although, depending on your relationship with your Lender, any refi delay could mean you'd be walking a fine line between: borrowing too much too early, or, leaving it until it's too late! Cheers!