Quitclaim deed considerations

[Timothy Ulbrich]

I'm looking to buy my first investment property from a colleague by paying cash and pursuing a cash out refinance after a minor rehab and placing a renter. He purchased the property for cash approximately 2 weeks ago with a full warranty deed and title insurance and has not mortgaged the property since buying it. I trust him and have a copy of the full warranty deed and title insurance and therefore am considering a quitclaim deed to save on cash. Beyond the risk of not having the same protections associated with a full warranty deed, are there any negative implications I should be on the lookout for? I'm thinking of things like any challenges there may be when doing a cash out refinance with a QCD rather than a full warranty deed? Thank you in advance for your input.