I purchased a positive cash flowing property last summer, for cash and am now (finally) looking to do a cash-out refi to pull the cash to use on another property. My other properties were all purchased with traditional bank mortgages so I get that side of the equation. On this one, I bought at let's say $51000 and its now worth approx. $62000. Not a huge appreciation, but it's something and considering this is Midwest, it fits. The refi rates I've gotten estimates for so far are 5.25% (traditional bank) or 5.62% (investor focused broker) plus around $3200-3700 in closing costs. Seems excessive to me. I know this wasn't a true BRRRR since I purchased with a renter in place and the place has only had a few "rehab" fixes completed (exterior trim work and painting, bathroom leak floor replacement).

I'm looking to start scaling up and acquiring faster (better!) but in this case the cost to pull $42k out seems a little higher than I expected. What am I looking at wrong or missing here?