My First Cash-Out Refinance on a Midterm Rental (Process, Numbers, and Next Steps)

Bailey Kramer shares completing a cash-out refinance on her first solo midterm rental, bought in 2022 for $115,000 (listed at $130,000) with an 8.5% rate and about $35,000 down. The property has averaged $2,500–$3,000 per month and appreciated; a recent appraisal came in at $145,000. She refinanced into a new $108,000 loan at 6.6%, paid off the prior $80,000 mortgage, and received a $19,734.94 tax-free wire after lender fees (~$2,700) and required prepaid insurance and taxes, with an additional escrow refund expected. Despite the larger loan balance, the lower rate keeps payments about the same. She explains cash-out refinancing, plans to reinvest the proceeds into future real estate opportunities, and is delaying a similar refinance on her triplex until rates drop back into the sixes.00:00 Cash Out Refi Reveal00:47 Backstory First Rental02:12 Property Performance Wins02:36 Why Refinance Now03:23 Cash Out Refi Explained05:03 Fees Closing Breakdown06:45 Rates Next Refi Plan08:00 Reinvesting The Proceeds08:39 The Real Estate Cheat Code09:35 Wrap Up And Next Steps