Thoughts about the art of leverage?

[Randy Gleysteen]

Hey guys, I have been trying to figure out a good overall strategy for putting a cash out loan on a couple of properties. I'm not sure if there is a book or even a discussion on this forum, but I couldn't really find what I was looking for. So here it is....

So assuming I have a property that I own outright that will rent for $1,500/mo.  I would like to do a cash out for an undecided amount of money, to help pay for the improvements on another property I own.  50-75k should do the trick.  And then when this is finished id cash out to repay borrowed money for the purchase of the second property.  Rent on the second property should be $3,000/mo ish.

So, this being said, I currently work, so I was not thinking about taking the rental income personally, rather maybe putting a 15-year cash out where the rent would be close to the mortgage, using the cash to purchase and improve and then letting the tenants pay my mortgage balance back down.  I feel like somebody might have a good algorithm for these kinds of situations putting a tax strategy into play. 

Cheers,

Randy