Cash out options for 5th rental property?

[Jenny Scott]

Hi all, 

I have been thinking about to cash out a rental property, but not sure how to start. (I am total newbie). The reason is that I want to POSSIBLELY(so I may not buy if no good deal) buy a new rental. Let's say I want to buy a rental with 200k. 

I have another 5 rentals and one mortgage is all paid off a while back. I heard when it gets to 4 or more, banks will no longer loan on investment? I don't know if that is true. 

So basically, the way that am I thinking is, I have enough equity from my primary and I am sure I can get a 200k HELOC as a second from my primary. The rate might be higher but I like it is flexible, and I can use it over and over again. So once I have this HELOC and if I do find a good deal in my range, I will use HELOC to buy it.

But the question is, after I used up my HELOC, how can I get cash out from this newly purchased rental, or if not, how can I get cash out from the rental that I already paid off? If I can get a cash out refinance on my 5th rental, use that to free up my HELOC, then I can re-use my HELOC to find my next deal and repeat, right?

Looking forward to hear some advices.., (I am in North Atlanta area). 

Thanks you all. 

 Jenn