Cash out refinance case

[Demjan Van Der Kach]

Hello fellow investors!

I have a question for those who experienced the following scenario (I apologize for the oversimplification and numbers clutter):

I bought SFH rental for 300K with conventional 20 year fixed 3.75% a few years ago with 60K down payment. Now the property is worth 475K. The mortgage balance is roughly 190K. I would like to cash out refinance and take out 150K cash to put into the new deals. I am offered the new mortgage at 75%LTV (356K) at 4% fixed 30 years. Here are two questions:

- If I invest 150K cash I pooled out from my above-mentioned rental and use it for two more rentals with the down payment, say, 75K each and assume I get the mortgage 80%LTV fixed 4% 30 years can I still fully deduct the mortgage interest from all the rentals?

- can my depreciation to be increased in the cashed out rental (my initial depreciation was calculated 240K/27.5) to 356K/27.5 per annum based on higher appraisal?

Thank you