Cash out refinance before finding next deal

[Steven Ruff]

I’m looking for opinions on my plan. It obviously seems right to me but would love to hear any other ideas you guys may have.

I have a str in NEPA that I adding a lot of equity into.   I can cash out refinance for the same rate and have enough for downpayment/rehab/startup costs of the next str I want to buy.

I’m looking for another str in the area. I have access to 401k loan or pension loan to cover the down payment as well. 

I am starting the refi process now with the theory that interest rates are not going down any time soon. Even without finding a property yet I would still be ahead having 100k in my hands at a cost of 4.75%. Even if I fund the next str differently I could use this money to lend at a higher rate.


If I do find a home during the time before my cash out refi closes, will it be hard to start another mortgage application for the new str?