Buy and Hold. Self finance cash to Cash out mortgage

[Dean Engel]

Background:  have 2 rentals purchased in the 90's, looking to start investing again. I am interested in buy / hold (or buy and flip if right property) properties. 

Financing strategy question.

I have the assets to buy properties Cash, and thinking this is an advantage in buying properties at a good price.  Intention would be to buy, rehab and then rent.

Strategy discussion: 

  Upon completing the rehab, I would then take a Cash-Out mortgage to return liquidity to my portfolio, and then likely purchase next house with that cash.

Help me understand if I am missing something in this model?  do others do similar?

Example: 

 Buy property for $200k.  Rehab $50k. Cash.  AFV $300k.  Assuming  25% down.  Refinance would pull $225k of $250k invested.  costs: 2 title costs +  1 finance closing costs (vs 2 title, and 2 finance closing)

The alternative is to buy with financing, and then cash out financing later (or leave $50k down + $50k rehab investment in property)