Cash out Refinancing

[Bradley Perry]

So, I just purchased a lake house as a vacation home. I put 35,000 down. I am renting it through Airbnb and VRBO. The appraised value is 18,000 more than what I paid for it. Since then, I have done some work that I believe would drive the appraisal up at least another 5,000. Would it be a bad idea for me to get my capitol back up by doing a cash out refinance to reinvest? 

[Jamie Derasmo]

Typically with refinancing a mortgage, it's advised to wait 6 months and maybe even a year for value to appreciate (season). Also do you have at least 75% LTV? Most lenders won't let you borrow more than that in a second home/investment home but you can always check with lenders to be sure. Based on that math, and IF you have the necessary LTV, you'd only get about $13K (I'm not including the $5K in potential appraised value). With closing costs, it doesn't seem worth it right now, in my opinion.