Mortgage and Tracing

[Ray Li]

(Sorry for the horrible formatting, don't know why bullet lists don't show up.)

I just want to make sure I understand how the mortgages are traced, from what I've read online and from biggerpockets forums. 

1. When I buy a house using conventional financing, the mortgage is simply traced to that house. I can deduct the interest on the mortgage payments against any rental income or gains from flipping the house.
2. When I buy a house using conventional financing, and then do a cashout refinance after a few years to capture some of the equity, is the new mortgage still traced to the house? If so is the interest on the entire mortgage payment tax deductible against the rental income? If not, is only part of the interest deductible?
3. When I buy a house using delayed financing by using all cash first, is the mortgage still traced to the house?
4. When I buy a house using all cash first, and then later do a cash out refi, HELOC, or a private loan secured by the house, the mortgage is not traced to the house anymore from what I understand?
   1. If I leave the money in the bank, I can't deduct the interest payments against the rental income from the first house?
   2. If I use the money to buy another house I can deduct the interest against the rental income or flip gains from the second house right?
   3. If I take out the money, and wait a few months to buy a house, can I still deduct interest payments for the few months the money is sitting in the bank?
   4. If I use the money for other investments can I deduct the interest against the gains on those investments?
      • Interest income from private lending?
      • Stock trading?
      • Tax lein/note investing?
5. If I buy a house using a mortgage from a private lender secured by the house, the mortgage is traced to the house. If I later to a cash-out refi with a conventional bank to pay off the private lender, is the new mortgage still traced to the house and thus deductible against the house's rental income?
6. If I buy a house using a mortgage from a private lender secured by the house, pay off the private lender with my own cash, and then do a cash out refinance with a conventional bank, the new mortgage is not traced to the house anymore?
7. So in conclusion as long as I buy a house using all-cash (or at some point own the house 100%), there's no way for me to get any new loans traced to that house and therefore no way to deduct any interest payments against the rental income on that house?

Sorry if the long list of questions. Just want to make sure I understand how this works.

Thanks,

Ray