Quick rental question!

[Juan Campos]

Hey guys back with another question for the veterans and pros!

How wealthy does a cash our refinance work?

Assuming I buy my first property this year which is my goal, let's say I build equity on it 20k got it for 200k, it appreciates in value to 250k, I can take the difference as a loan And put my home as leverage ?

But now not only do I Have a mortgage I have an additional loan on the home? Or is it combined into my mortgage with a lower rate?

With that being said how would I purchase a second home /rental if my dti is high due to my first mortgage and loan? Do they analyze the income in my first rental ?

I just ordered the brrr book, how to invest in realestate book as well and I am excited as I do look forward to doing this, but this part is where I get confused,