ADVICE NEEDED! REFI with cash out?

[Marian Jimenez]

Hi,

So I'm trying to make my first move into real estate investing. I'm going to be pursuing multi unit rental properties that I will "hack" by living in them for the first year.

I'm having issues with how to start. Here is where I stand today:

I own my home.

I owe very little on my mortgage. 200K on a 890K+ home

It is amazing rate of 3% for 15 year fix.

I don't make enough money for banks to think I can pay more then what I do. (even though I have been paying more then the regular payment for a year). My income fluctuates do to my freelance work.

I have an amazing credit score 799

I tried to get a line of credit and got rejected from my bank.

I now have an offer to refinance and get cash out for a total of $375K loan at 4.5% for 30 years (That gives me a bit more then $175K out)

My plan was to keep my mortgage as is rent my place out to cover it and get a new multi unit to live in and rent. This would off set my income and help me pay for all the loans. Main problem here is that I don't have money for the down payment.

I would really love any advice people might have for me. If there are any lenders out there that can give me better options I would gladly talk to you.

Thanks!

Marian