Cash out refi - good idea?
Hey everyone, I was hoping I could get some input on this. I'm considering refinancing a 4-plex. I bought the property for $120K in 2016. The property is probably worth $190K now. Here are the details.
Current
Purchase price - $120K (2016)
Monthly payment: $449.36
Interest rate: 4.375%
Remaining loan balance: $83940.28
Rental Income: $2540
After Refinancing
Loan amount: $130K (conventional 30-year fixed)
Interest rate: 3.875% (1.875 points)
Monthly payment: $611.31
The difference between the current loan balance and the new mortgage is ~$46K (minus a few thousand in closing costs). The difference in total interest I pay over the lifetime of the mortgage is $18303, and I have paid $14613 so far with my current mortgage over the past 4 years, both of which add up to $32916. I was planning on buying another rental property if I do a cash out refi. Does this sound like a good deal? Are there any pitfalls or "gotchas" that I should watch out for? I'm pretty new to this, so any advice would be appreciated.