Cash out refinance primary residence to use as rental property?

[Niko Duffy]

Hello! I have a question on using a cash out refinance with primary residences in relation to rental property 

Here's my situation: I have a property that I have lived in for 2+ years in which I have a significant amount of equity due to appreciation that I am interested in turning into a rental property. What I would like to do is cash out refinance this current property, and then take that cash and use it as the down payment on a new primary residence, while turning the property that I just cashed out into a rental.

Here's the problem / where I'm confused: I know there's a period (6mo - 12mo) after you buy a primary residence that you can't use it as a rental (otherwise it's mortgage fraud). But I don't know whether that clock resets when you refinance that property

Here's my question: When I cash out refinance my primary residence using primary residence rates, does that reset that 6-12 month clock OR, because I've already lived in this property for 2+ years, can I refinance with primary residence rates and then immediately start using that property as a rental.

Thanks all, really appreciate the help!

--Niko