My wife and I bought a home in Clairemont (San Diego) back in 2011 for $330,000. Now it's probably worth close to $550-600k. I'm trying to get my foot in the door to invest in real estate. The option I have now is pulling equity out and finding a multi family unit somewhere south of the 8 (where it's more affordable). My problem is convincing my wife that using the cash out refi towards an investment property rather than remodeling the kitchen would be a better thing to do. I currently have a 30 year fixed VA loan at 2.75%. If I pull the cash out 100-125k it will increase our mortgage ~$600 more a month and the rate I'd be at is 3.75% (depending when I lock it in). Now the broker I'm working with says I could always buy it down to 3.5 or even 3%. I think I agree with him on this. The problem though is now I need at least 25% down on an multifamily (which would eat the cash out) plus finding a property that has renters who are paying enough rent to compensate for the increase at my primary. I feel it's best to get started investing in my backyard first and become more familiar with all the processes. However, San Diego, as I'm sure you know, is a tough market. Should I just forget about starting here and look elsewhere? Do you have any advice on trying to get started here? Is my plan flawed? Should I pull equity out now and sit on it? If I pull equity out now before the market softens Ill get more at lower interest rates but if I wait until it turns downward then I risk a higher interest rate and less equity. If I pull it out now and wait then I will eat it until I think the timing is right and don't think that's a good idea. I apologize for the long-winded message. I'm just trying to find some answers and to get in the game. Thank you for your time.