Is there a problem with a stratgey like this?

[Jacob Korobellis]

Hey yall, I am new to investing in real estate as you may be able to tell by the question I ask... LOL.

But theoretically, why couldn't I find a multi-family property that is already positively cash flowing, purchase it with a conventional lone putting 20% down, for let's say 75-80% of the property value, refinance it, and pull all if not most of my down payment back out and keep repeating that? 

Would that work? is it scalable? Or would I be setting myself up for very bad problems down the road? 

Thanks, 

-Jake