Minimizing Taxes using Equity in Rental Property

[John Wolf]

I am retired with a several rentals and looking to minimize taxes. I was reading a tax saving idea regarding using the equity in a real estate rental instead of withdrawing Retirement Savings. From what I understood, I can refi the paid off rental, do a cash out, and use money that to live on. Since that money is not income, it would not be taxed. That would allow me to not withdraw the money from my IRA, thus saving tax on those withdrawals and letting that money grow. I estimate the refi money will last me 5 years, then I'll sell the property, as I was planning to sell at that time anyway. According to my calculations, the tax savings was well worth the effort and made up for the additional expenses. Am I missing something?