Cash out refi good idea or no?
I have a property that I have built a good amount of equity about $150,000 for an estimate. I plan on renting out this property and never selling it. I could take out about $80,000 in a cash out refi and use that money to pay off some debt and use most of it to put a down on another property. Doing this would add about $300 a month to my mortgage payment. The rent I would be getting would still cover this payment as well as cash flow a good amount. Is this a good idea? Should I utilize my equity or just get more cash flow when rented? Thanks in advance!
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@Alexis Jaramillo look at the overall ROI and ROE. What can you do with that capital? You're paying 4.5% to use that money...can you get a return better than 4.5%? If so, yes absolutely. If not, well...