Cash-out Refi / Traditional Refi : Is there a difference?

[Stavros B.]

I've been trying to reconcile refinancing options in the BRRRR strategy and keep circling around the same bit of confusion on the refinancing portion. I continually hear on the podcast and read on the forums about how it's virtually impossible to receiving conventional financing after a certain amount of properties (~4-5 at the point, due to DTI and not just Fannie/Freddit max loans) but it never seems as if anyone mentions having challenges doing a cash-out refinance on their property following the seasoning period.

Are cash-out refinances handled differently than traditional ones in that you can have more mortgages than otherwise entering into the transaction at the onset? Or are the cash-out refinances happening with private/portfolio lenders? I am just pondering the long term here, as well as to prevent launching into a property and finding I didn't prepare properly for the cash-out to pay myself back on the initial outlay. 

As I am still in the formative/planning stages of my business plan I am analyzing deals based on using my HELOC (~$55k) and borrowing from my 401K (~$25k borrowing power) if needed to serve as my own little hard money lender on distressed properties under $50k. The vital part of that strategy as with any other hard money lender would be to get your money out ASAP and get the new mortgage at a level where the property cash flows.

Appreciate any clarification, seems like I'm getting hung up on a silly thing here and need someone to straighten me out! 

Thanks!