cashout refinance tax impacts?

[Rocco Swinney]

Hi All! I purchased a condo unit about 8 years ago as a primary residence. I aggressively paid it off (while i lived there) before i made it a rental and have been renting it out for the last few years.

I was interested in doing a cash out refinance on it to purchase a few more properties. My question is does this impact deducting interest in anyway on this current property of any new property the cash is used for?

Ex. Say the property is now worth 200k. I do a cashout refinance of 80k and use 50k of it as a down payment on another rental that was 200k (total loan 150k)

Can i still deduct interest from rental 1. 80k loan and rental 2. 150k loan?

It sounds like i can only deduct 50k of the 80k for 1., unless i use the other 30k on another rental to deduct the full 80k?