@Mike O.
After reading your post, a few questions came to mind.
1) Is there a specific reason why you prefer townhouses over SFH? From what I have researched and heard on BP, townhomes seem to more likely than not have HOA fees associated with them. If you purchased SFH (with no HOA fees), then you would have that extra $150-$200/mo from HOA fees to go to increase your cash flow, save for repairs, etc.
2) Have you considered using some of the excess money (current going to pay down the mortgage) and putting it into an account for each property to cover repairs and eventual replacement of items? Obviously I don't know the state of your present properties. But, if part of your idea is for each property to be self sustaining, this might be something to consider.
3) Why did you use $180K in cash to outright pay off the 2nd rental in full? Was the plan to always use this 2nd property as a rental or did it turn into a rental? I ask these questions since I am confused as to why you put down $180k into the property and are now trying to take out $100k through a refi.
4) Besides your "10 properties free & clear in 10 years" goal, why are you choosing to pay down the properties with your own money in lieu of OPM? IMHO, if I was going to want to essentially quit my job in 10 years, I would want to secure keep some of my funds liquid to safeguard my family, as well as, ensure that I was able to successfully manage all of my properties without the need to reenter the workforce.
Hope this questions help us better assist you in realizing your dream! :)
