Brrrr my current home?

[David Taylor]

Getting ready to make our first property purchase. Debating on the best way to gather initial capital. One option we are discussing is to BRRRR our current home.

So - Cash-out Refinance our house -> Purchase a new home (hopefully a house hack MFH) to move into -> then rent out our current home

But I am tied up on the cash-out refinance piece. 

We currently have 18% equity in our current home (which is appraised at $130K). 

Should we pay off a sizable amount to our house to get us closer to 20% or 25%? 

Then cash-out refinance. At 75% LTV - that's $97K (minus fees) which we would use as a down payment and rehab costs for the new home.

Is that doable? Or am I thinking about it completely wrong? 

Thanks, everyone!!