Would it make sense to pull cash out of a property if you paid it off over the last 15 years?
Let's say 15 years ago you purchased a commercial real estate property. Over the last 15 years you have paid it off and it turned out to be a great investment.

Would it make sense to pull cash out of the property and continue paying for the property on a new loan to give you some more cash to invest in other properties?
[{"id": "gv84s7m", "text": "It depends on the cost of the financing and where the proceeds would be invested. It doesn't make sense to pull out cash for the sake of having cash sitting around (unless you need it for TI or other capital reserves). Other properties could be a higher or lower return depending on market conditions.", "replies": [], "depth": 1}, {"id": "gv8rr6s", "text": "Might be a way to extract some value, especially if it's low-no recourse", "replies": [], "depth": 1}, {"id": "gv8syja", "text": "Sooo... have you thought about selling into this fantastic market??\nSometimes you can cash out high and find a new property which has not blossomed yet ... be that today or in the future.\nWe have been riding a rather big wave of increased value lately ... and sometimes we become blinded by our desire to gain more ... when more has arrived.\nJust saying", "replies": [], "depth": 1}, {"id": "gv949nv", "text": "I have a lot of clients that\u2019s are refinancing their properties and pulling money out and putting there money ti work for them buy purchasing other property that make seance to them", "replies": [], "depth": 1}, {"id": "gv99mtd", "text": "This is our entire business model, so my answer is an unequivocal yes.", "replies": [], "depth": 1}, {"id": "gv9bvg4", "text": "It makes perfect sense as long as you reinvest the refinance. You can grow your net worth 300% or more this way over 25 years.\n\nThis is what I did 10 years ago. I was living the American dream of having a few homes paid off. Felt like a millionaire although i only had 500k or so . I refinanced and took out close to 350k . With that money I bought around 7 homes which then appraised to almost double from 2012 to now. i have since refinanced those and took out more than I put in which is all tax free because loan money isnt taxed.\n\nI reinvested that money into more property etc etc. I'm currently at 69 sfh all across illinois. It was the best decision I ever made. My average homes is worth around 180k and I have 30-40% equity in each home. Having the homes paid off was ok but using leverage changed my life.", "replies": [], "depth": 1}, {"id": "gv9lobc", "text": "I would say yes. I would imagine you can get a more reasonable interest rate that way since you are lower risk. It will allow you to use leverage to borrow more money.", "replies": [], "depth": 1}, {"id": "gv9ul75", "text": "Phantom equity, although safe, reduces your overall return. There\u2019s no need to have 100% equity. Debt is SO cheap you\u2019re cheating yourself...", "replies": [], "depth": 1}, {"id": "gva1clo", "text": "100%", "replies": [], "depth": 1}, {"id": "gva4u6j", "text": "Leverage increases returns", "replies": [], "depth": 1}, {"id": "gvacfkh", "text": "Yeah... especially at today\u2019s low rates.\n\nYou can also clear your credit with a non recourse loan. So you can buy more real estate.\n\nhttps://www.investorschoiceloans.com/multi-family-loans", "replies": [], "depth": 1}, {"id": "gvau35h", "text": "Yes. As long as that investment is good.", "replies": [], "depth": 1}]