Quote from @Bruce Schussler: A lot of Podcasts and Youtuber's say to cash-out refinance to keep rents balanced with payment; (PITI) then use those funds strategically to re-invest either in more real estate or just put into a high interest bearing account or money market account...Here's some of my thoughts and comparisons;Cash-out refinance with new loan so rents balance with payment:- The cash-out refinance is 100% tax free- The funds can be put into a money-market account off-setting a portion of the interest charge of loan- The loan balance gets eventually destroyed by inflation- The liquid cash eventually gets destroyed by inflation - The interest on the new loan can be deducted from the rent income- The refinance costs are 3-4% of the total- There is less equity in the property and LLC that can be attached in case of a lawsuit- The break-even on cash-out refinance with current interest costs on the new loan is around 12 years Vs.Paid-off property with positive cash flow:- The positive rent income is 100% taxable minus only depreciation and property tax- There is more equity in the property and LLC that can be attached with a lawsuit- The break even is not until after 12 years at today's interest rates- There is a rate risk in today's inflationary environment where interest rates on bonds keep rising*It appears to me that the cash-out refi is in the best interest for a property investor; (Dave Ramsey would strongly disagree!)

Obtaining the V.A. loan is going to allow you to put more liquid cash toward renovations. 

Are you open to taking a loan out on the home you bought with cash?

I have all cash in the property and for renovations, so no loans. 

It sounds like your house hack was a success after securing the FHA loan and renting out the second unit. 

They currently have under $1M in leverage on the assets but are looking to get a line of credit / portfolio loan to encumber these properties or other properties they acquire.

Often, these numbers sound incredibly high relative to the loan amount.

I would rather pay potential taxes at some future date than lose a loan at 3%.

You also need about 20-30% down on land loans so keep that in mind!

@Roy Jenkins probably best to get a fix-and flip hard money loan.