Cashout refi to leverage investmnets and 50% rule??

[Ken Williams]

I am debating on cashing out some equity to buy more properties or sell to leverage up. I would like to keep all of the properties and leverage as much as I can with refinancing but do not know what it would do to the 50% rule??

If you have a property that meetss the 50% rule and refinance it to buy another cash-flowing 50% property, is this a good financial option? This would mean that the first property would no longer meet the 50% rule but still cashflow a small amount after expenses.

What do you guys think of this situation? What would you seasoned investors do?

Thank you