Cash-Out Refi to buy More Rentals?

[Account Closed]

I have two rentals in addition to my primary residence, lots of equity in two of the three, I’ve been flirting with the idea of doing a cash out refi (or two) and using that as 20 or 25% down on the next rental. Wondering if anyone has deployed this strategy to build their rental business? With a long time horizon, I can’t think of too many negative outcomes.

I’m in Orlando (which is booming) and I would continue my strategy of buying properties in upper middle class/trendy areas near downtown. No shortage of demand.

[Jake S.]

Hey @Account Closed 100% do that. I do it with refinances and with HELOC's. Equity sitting in your properties is dead money and by leveraging those properties to access that capital to finance other income producing assets, you are increasing the velocity of your money.