Cash out refi's vs convential mortgages and 4 mortgage limits

[Matt Morgan]

Hey everybody, I'm just getting started investing and am looking to purchase some rental properties in out of state markets. I'm wondering whether it's better to purchase these properties with convential loans, or buy with cash and then cash out refi. I like the ability to rinse and repeat using cash out refis, but worry about diminished returns on capital due to 70% LTV ratios as well as having to wait up to six months to begin this process. Convential loans would allow me to purchase homes in quick succession without having to wait for cash back, but in the end it seems it would be hard to get my initial investment back out. Are there any other considerations to be made?

Also, considering I already own a home, I'll be running into the "4 mortgage limit" within the first six months or so. I will not have the 2+ years of provable taxed income on these properties nor the typical 30-35% down required to get loans past the initial 4. What are some way of skirting this roadblock?

Thanks