Cash-out Refinance on rental to hedge for Inflation

[Thomas Ruf]

Reading lots of articles about inflation and many suggest taking cash-out on rentals and even primary to borrow on 30 year. Argument is the debt will end up having banks paying back. Example:

* If you get $300,000 house (20% down = $240,000 loan) @ 3% and inflation rises 2-4% / year. First, you're dollar is worth less, but rents will continue to rise (because of inflation). Thus, effectively, you'll be paying back your mortgage with less monies.

Any investors our there considering/doing this? If so, are you cashing out to buy rentals at current inflated prices?