Refinancing a rental home with equity advice

[Kevin Raye]

I have a Rental property that is renting for $1850 per month. I owe less than 60,000 and my mortgage is around $700 per month. As of now the house is worth about 250 K. Should I pull the equity out and buy more real estate or should I work on paying off the current mortgage. Any advice would be appreciated.

[Brian G.]

@Kevin Raye if you’re in growth mode use leverage responsibly and do a cash out refi on your existing property provided the cash flow from that property will service the new mortgage payment and you can increase your total net income after buying your next property. After all, why use money out of *your pocket* to pay off your existing mortgage when your tenants are paying it off for you?