Should I refinance w/ cash-out or use my taxable account?

[Dan Marl]

Should I refinance w/ cash-out or use my taxable account to buy homes?

Hello everyone!

I am thinking of investing in real estate. Maybe in 5-10 years have enough rentals where I can quit my job and do real estate investment full time.

Situation:

- My home is worth 688k

- I still owe 227k on the mortgage

- I have 470k in my taxable account (mostly index funds) - they are doing good this year

Options

1.Sell funds in my taxable account to use as down payments for future investment homes. I will have to pay long-term capital gains tax 

2. Refinance my home with cash-out with 30 yrs fixed at 2.6% interest rate. I can borrow up to 510k to use for down payments. 

If I borrow 510k, the mortgage will increase from 900/month to 2000/month but I can handle that.

I am ready to buy 3-5 houses in the next 12 months. Maybe do BRRRR (Buy, Rehab, Rent, Refinance, Repeat)

What would you guys do?