Thinking of moving into and cash out refinancing two rentals

[Jack B.]

I'd get not only better rates than I have on the properties right now, but I'd get 200K out of them both while leaving another 270K in equity in them. This would bring my cash on hand to about 900K or about 65% of my net worth in cash position waiting for opportunities. I'd still 1031 exchange both of these two houses after renting them out again for a while and selling them maybe a year after moving out of them as my primary residence.

So I'd move into one, cash out refi, rent it out and move into the other house as a primary residence and cash out refi, sell the first house via 1031 exchange and buy 1-2 replacement properties then eventually move out of the other rental that I turned back into a primary and rent it out again then 1031 it also into 1-2 more properties and then I'd still have 900K liquid ready for new buying opportunities if there is a market correction. This way I'm still buying some stuff now but not putting ALL of my money into new real estate. I'm using existing properties to fund current new deals while tapping some of the equity on hand so that I may dollar cost average if there is a correction.

Thoughts?