cash out refi to raise cash for future opportunities

[Fred Stevenson]

So I believe there are going to be a lot of opportunities in coming months to purchase assets at hugely discounted prices so cash will be king. So my question is this,  I have a number of rental houses that have significant equity. Right now my rental income pays for all my rental expenses including PI, taxes, maintenance, etc,  with money left over each month.  I've built up a decent cash reserve that could cover my expenses in the event that all tenants stopped paying for at least 8-10 mos.

I've heard some suggestions that it may be a good idea to do a cash out refi on some of these homes that have equity to have cash on hand in the event that some of these future opportunities crystallize (discounted homes, stocks, even opportunties in the beaten down oil industry).  The potential problem with this idea is that I would be increasing my debt (at very low rates of course). The rental income will still cover the additional debt payments, but, what happens if tenants start to disappear due to this poor economy? Then I wouldn't have the monthly income from rents to cover my new debt. Any thoughts? Did anyone do anything like this in 2009.