I have 2 homes now (primary and secondary-rental). My secondary home has appreciated quite well (purchased at 255K, expected appraisal : 415K, loan remaining: 145K). The mortgage is a 15 year fixed at a very good rate (2.75%) with 11 years left to pay it off.

Let us say I do a cashout refinance for 30 year @4% and take out the equity (say 150K) to invest in SFH homes in other areas, I expect my debt will go up and also take a higher interest loan. Is this a good idea and will this affect my ability to get 8 other mortgages for my investment homes. My credit score is 820+ now.

I am thinking of the following investing strategy options

1. Invest the 150K spread across different crowd funding debt/equity investments. Get a return of 10%, so effectively I am making a spread of 6% against my loan so its 9K extra returns per year.

2. Use it along with other savings to fund down payment on 8 investment home with the following breakdown

Indy area:

a. 3 Homes in Indy area with a reputable turnkey provider around the downtown area that is gentrifying , Aim for positive cash flow of 900$ per month (300 per door) with a purchase price from 60 to 75K.

b. 2 Homes in A neighborhoods of Indy which require min rehab, purchase price around 110K but rentable at $1200 PM , Aim for a positive cash flow of 800 PM (400 per door) and work with a real estate agent and a PM.

Kansas Area/Des Moines/Birmingham

c. 3 homes in these locations that can give me good cash on cash returns (focus and B and A areas)

Without taking the cashout refinance, my savings can only give down payment for 2-3 homes this year. Should I try to get 2-3 first or go ahead with the cashout refinance. Any issues in ability to get financing for the planned 8 if I went this route?

Insights and suggestions greatly appreciated.

Thanks

Sunny

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Cash out refinance on secondary home and credit score

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