Cash out refi - interest tracing rules

[Matt N.]

Hi! I was reading about the interest tracing rules and it seems like if I do a cash out refi (even on a primary residence) and then put that cash in a separate investment banking account, I can begin writing off interest from the investment. Does anyone know the following: 

1) If this sounds doable, and if there is guidance on what I can do with this. For example, can I purchase stocks with this cash and still write off taxes?

2) What if I use the cash to purchase upgrades for another investment property - can I write off both the cost of the upgrade AND the portion of interest associated with the upgrade?

3) If it just sits in the investment account, can I still accumulate taxable interest year after year until I use the cash for an income-generating property or stock?

Thank you!