Hello all, long time reader and first time post here. I appreciate all of everyone's contributions here as it gave me the confidence to step up to the plate and recently closed on my first long-term rental.

I live in California and saved enough money to purchase (with my cash) an out of state long-term rental. The home I purchased was on a large lot and I was able to get it rented and running with a small cash flow immediately. I was happy. On the property, there was a large slab concrete foundation (approximately 700 sqft) wherein I pulled a small HELOC from my current home in CA to build that into an efficient 1/1 that I rent separately. That also rented immediately with strong cash flow.

So, in essence, I have 1 out of state mortgage which is more than covered by the first rental home which is a 2/1, and I pulled a small HELOC from my CA property to build that 2nd home on the same property.

All-in-all this property cash flows well and I am happy with it.

Now comes my question:
I am interested in refinancing as I have read through the BRRRR method but have some questions on this. I would like to pull my invested cash out of this property and re-invest that into a new cash flowing rental property. Essentially, I am looking to rinse and repeat, however; I don't want to keep using a variable HELOC interest rate to do so.

1. Can I cash-out refi this rental property?

2. If I cash-out refi the property, it's value is reassessed - meaning the property value goes up and I get cash out of the deal. Does that mean my mortgage for that property goes up? The reason this is important is because I don't want to increase my rents to cover the new higher mortgage. This is the biggest question I have regarding how to make this method work.

Guys/gals, how do I work this out as I know from reading through BiggerPockets that this is doable, just trying to connect the dots. Thank you all, again, for any input here.

San Luis Obispo, California

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