Brrrr method questions

[Shawn Byrd]

So an army buddy of mine and myself are looking to break into the brrrr method within the next year but I have a few questions I cannot seem to find on the answers to on the forums. I plan on trying to buy a house below market value at auction. I understand some risks are involved and as far as I can tell, as long as i buy below market value, check for liens that could transfer to my name via a title search and estimate a modest ARV and rehab costs, i should be able to lower the risk a bit. Is buying a house at auction a stupid idea for a brrrr method? I figure getting a house well below market value would give you a bigger chunk of change during the cash out refi? Also, is it possible to get financed on an auction deal through a bank? Do you just get pre qualified and bring a 20% down payment? During see research on the forums, I see people who have trouble actually doing the cash out refi because banks just won't do it. Why won't the banks refi people's houses that have the equity in them? I also heard that banks will only let you have up to 4 mortgages in your name before the kinda cut you off, however you can use a portfolio lender to cash out refi, what is the REAL difference between them and a bank. From my research it seems you get kinda screwed when using a portfolio lender because they want you to get a 15 year loan or a 7 year ARM. Is this true? Basically how do you positively break past the 4 houses mark without getting a horrible finance deal. I'm trying to stay away from hard money or private lenders because I'm not entirely sure how those deals are structured. Sorry for such a long post, just trying to smarten up so I don't ruin the first buy.