Using Equity in primary home to purchase STR investment?

[John Semioli]

My wife and I have a paid off home that will probably appraise in the range of $1.1M to $1.2M. Our Financial Freedom plan has us looking to purchase one STR investment home per year. (We purchase our first one last year.) We could wait to save for our next down payment or tap into the equity in our primary residence. How would we perform the analysis on potential deals to cover the cost of a new equity loan. Is it just a debt service on the new property? Would it make sense to purchase the new property outright (cash), perform any necessary rehab, then refinance to pull out initial investment?? Obviously the numbers need to work, but we are concerned about the blind spots in this strategy we don't see.