Personal Home Refinance for cash out to help place down payment

[Tony Wilson]

Sample A:

I'd like to refinance my house to pull out cash for a couple rental properties (or just one). If I refinance my house it'll add $171 a month to my current mortgage plus closing cost to refinance. That being said, it'll give me $40K to invest for a down payment or a large portion of it. One house is selling for $70,000 while the other is $60,000 and they should each rent for $850-$900. 

After the down payment, the loan amount (p&i) will be $284.00 a month for the $70,000 and $243.00 a month for the $60,000 home. 

Would this be dumb to do or is it a good decision?