Regarding Cashout refinancing

[Hyeseong Park]

Hello I'm curious if this strategy is theoretically possible to expand super fast wealth as below:

For example, I buy a rental property for $70,000 in cash and then immediately did a cash-out refinance to get $56,000 in cash (I know usually it takes 3-6 months season to cashout refi, but as long as one lender is able to do refinance it)

I then use $24,000 of the $56,000 I borrow as a 20% down payment to buy a $120,000 rental property. After that, I do another cash-out refinance on the $120,000 property at 80% LTV to get $96,000 in cash. Now I have $32000 + $96000 cash in my pocket. Is it feasible to get $96,000 in cash eventually from the second cash-out refinance in this way and keep expanding wealth in this way?

This is not BRRRR I think.
 

(As long as the real estate value, loan conditions, and cash flow all are feasible.)

[Katherine Blazer]

It's a great plan. Normally cash-out refinances are capped at 75% and of course, they will need to cash flow positively with principle, interest, taxes, and insurance. You will also want to confirm the loan and asset values minimus. Some banks really like $100,000 loan amounts. And it sounds like you are really looking for delayed financing. 

So your numbers may be a little off but it is doable. Where is the original $70,000 coming from?

$70,000 * 75% = 52,500. You could then do the $24,000 down on the next one, but you would not need to do the refinance. Your original loan amount would be $96,000. so you would have around $42,000 of the original $70,000 in down payments. You will also have closing costs.