Understanding Cash Out Refinance Interest and Points

[Arron Paulino]

I am in the process of cash out refinancing one of my rental properties to complete the BRRRR method. The person doing my loan has offered me two choices:

- 4.5% with 2 points or 4.875% with 1.375 points

I have calculated the ARV of the property to be $70,000 and I will be able to cash out refinance 70% of the loan. The amount I anticipate to be given to be is ~$50,000. My question is: what option is better if I am pursuing the BRRRR method and playing to buy and hold this property long-term? Thanks in advance!