Mortgage to Release Equity?

[Byran Parson]

I have a rental property that is paid off, worth about 60k.  Rent is 700 a month.  Taxes and insurance total about 125 total a month.

I am considering taking out a 25 year mortgage on this property, at 4.5% with the rate changing every 5 years.  Closing costs would be around 1000 dollars.

The bank allows 80% LTV which would be 48k available for use.

If I take this 48k and invest in 3 additional properties that meet the 50% rule along with the $100 per door rule, I could cash flow 4 properties (total) that follow the cash flow rules just mentioned.  I can buy 3 properties with these houses being bought for between 40k-55k.  I cannot go over 55k if I want to follow the aforementioned cash flow rules, with the market rents being what they are, in my area.

Anyways, does this sound like a good deal(s).  Any thoughts appreciated.