Is there any downsides to pulling out more cash than you paid in delayed finance

[Kevin Zh]

I recently bought a property with cash and the appraised value came back at double the price I paid. At this point, the bank can loan me all the money I paid and then some.

At the price I paid, rent to value ratio was 1.4%. At the appraised value, this ratio goes down to .7%. So if I take out the max cash for the loan, the home wouldn't cash flow per month anymore.

I'm trying to see if it still makes sense to take out the max cash though. The bank is basically giving me money I didn't have before, so worst case I could use that money to pay the difference between rent and monthly payments.

I plan to re-invest the money into more real estate, S&P 500 and having some money incase of repairs/rehab.

On the other hand, I want to make sure I'm taking into consideration worst case possibilities and not screwing myself by taking out more money than I really need / I paid for.