To Refi or not to Refi that is the question

[Mark Trebor]

So my investment group owns 19 SFH that we have bought and have chosen to hold. We currently have 6 houses that we are targeting to refi. The average interest rate for the 5 houses is over 5% but with today's low rates we can get around 4.125%. The 6 houses are valued at 1.2M and we owe 650K on them. Our P&I is currently $4097/mnth for the 6 houses. We are contemplating refinancing the 6 houses into 30 year loans and taking ~$220K in cash out. Our new payment P&I for the 880K loan will be ~$4400/mnth. The three of us are simply of thinking about rewarding ourselves. each taking 70K and some change for a reduction of only $300/mnth cash flow. All 6 of the house cash flow nicely (nicely = $730/mnth per house after PMIT, maintenance and operations). What would you do?