Pandemic rate locked...cah out refi?

[Rashad Ellis]

So my first property after reno and rented has been giving decent cashflow after expenses. Pandemic rates so I always said a refi is out of the question. However I'm back in the game trying to buy a second property. Now I'm reconsidering doing a cash out refi and use the cash for funds to reinvest. The refi calculator quote has the property still cashflowing after. Rate would almost triple but it ideally will continue to pay for itself. Any advice or thoughts?

[Vijay Friedman]

Quote from @Rashad Ellis:

So my first property after reno and rented has been giving decent cashflow after expenses. Pandemic rates so I always said a refi is out of the question. However I'm back in the game trying to buy a second property. Now I'm reconsidering doing a cash out refi and use the cash for funds to reinvest. The refi calculator quote has the property still cashflowing after. Rate would almost triple but it ideally will continue to pay for itself. Any advice or thoughts?

@Rashad Ellis
If the property still cash flows after the refinance and the proceeds can help acquire another cash-flowing asset, it can make sense to look beyond just the rate increase. I'd compare the long-term cash flow impact versus the returns you expect from the next purchase. A lot of investors are weighing that same tradeoff right now.