Q RE: cash out refi with no target

[Jim Chuong]

I would like to hear people’s thoughts on doing a cash-out refi when an investor has a lot of dead equity

1) at what point would you start thinking about a cash-out refi start. One extreme would be 100% equity and 0% debt but I’m sure people consider it far before this point. What point is that?

2) would you cash-out refi if you don’t have an immediate opportunity? On the one hand, you will have the cash to move quickly if an opportunity appears but on the other hand, your equity is still increasing so you could be pulling out more cash if you did the refi later (remember you don’t have an existing opportunity)

3) any other thoughts appreciated

Thanks