Pay Cash, Refi, Repeat?

[Jason Pearson]

Lets say that I pay cash for my first rental using a HELOC against my residence. I now own a rental free and clear (still owing the Heloc). Can I obtain a traditional refi now that there is no current loan on the home? If, so, could I do this within a few months? Now lets assume I get my money back from the refi to pay back the HELOC. I would be ready to start looking for my second rental. When it comes time to refi the second house in order to get my cash back, wont it be more difficult to get a refi being that my debt to income (with a modest day job) ratio is now changing each time I try to acquire a property? How do investors make this work? I would love to be able to secure a rental with cash, refinance, and repeat but figure the banks would be hard pressed as the debt would increase significantly with each refi. Thanks