Where to spend the cash-out?

I would suggest you find a good financial advisor. The interest rate that you will be paying on the new mortgage should be less than the return you can get in the stock market (or safer investments like money market accounts, etc.). You always want to look at money in terms of the interest rate you are paying versus earning. Good luck!

You should probably spend it on new pants, since it's apparently burning a hole in your pocket. Is there a rule that says you have to spend it anywhere? Why would you want to increase your principal balance on your properties to take cash out that you clearly don't need. Here's a thought, I have a 7 year old that could use a college fund. Feel free to contact me and I'd be happy to help you spend it.