Cash Out Refi Consequences

[Alfred Litton]

I would appreciate some sage advice. I own a few SFHs outright and also have some personal debt I incurred to purchase another SFH. (A Lightstream loan.) If I were to do a cash-out refi on one of the properties I own outright to pay off that Lightstream loan OR some other personal debt, are there tax or other legal consequences I might encounter. I'd have to switch the refi'ed home out of my LLC into my personal name (quit claim deed). Does the refi simply act as a capital withdrawal from the LLC for tax purposes? I just don't want to get into a tax jam for doing it. The hope would be at the end that I have deductible interest (new mortgage on the cash-out property) and no more non-deductible interest (Lightstream and a credit card or two in my personal name). Kosher? Good idea? Bad idea? (Thanks for any advice.)