Cash out refinance strategy vs multiple conventional loans?

[Samuel S.]

Hey  BP Folks,

So I am looking to structure a deal with a family friend whose an active investor, where he would be providing $100K in startup capital.  I would be the active manager, basically running the entire business (PM etc).  The investor would be a passive manager, and we would split the profits 50/50.

In this scenario, would it make more sense to utilize the "cash out refinance" strategy (purchasing a property all cash, renting it out, getting it appraised, pulling all the equity out, and repeat) OR would simply getting multiple conventional loans be better? 

I am leaning toward the cash out refinancing, as it would allow for purchasing properties at a discount, adding value in some way, getting it appraised for higher than the purchase price, and having the chance to pull out more cash than what was put in.  Although with refinancing costs and seasoning periods, I don't know how quickly/efficiently this would actually play out.

Any advice would be greatly appreciated!!