Refi Cashout - Make Sense for this?
I am trying to do refi with cashout for 4 properties and thinking of using the cashout to payoff the fifth property. Looking for thoughts/advice from BP experienced folks. Am trying to gauge if it makes sense to proceed or keep as is.
- Average ARV of properties: 140K-180K
- Current Loan Interest rates: 4%
- Refi Scenario
- Total Refi Cash amount: 68000 (Avg: 17K per property)
- Closing Cost that I will pay: 32600 (Avg: 8K per property)
- Monthly Payments: Total remains almost same due to lower interest rates
- Fifth property that I'll payoff may result in additional $400 per month cashflow.
I notice all the loan amount getting increased by almost 7K more than what I'm getting cashout amount.
Does it make sense to proceed with Refi cashout for these properties? OR should I just keep this as is and wait further? I want to take benefit of low interest rate but the 8-9K increase in loan amount plus additional charges about appraisals, etc is making me worry if I should go ahead or not.
Thoughts and comments are welcomed.