It’s two different philosophies.

I think I understand your outlook: You consider the refinance money as costing interest because now you are paying interest on the funds that you don't own in the primary and rental residence.If that's how you see it, I can't disagree with your philosophy, and it shouldn't stop you from investing as if the money were "interest free."

With enough properties in your portfolio you will graduate from that philosophy and will recognize that you can fill your single family homes in a matter of days.  

@Bart H. looks like you've built up a big portfolio, how are you going about it and what's your philosophy given these challenges?

The Morgan philosophy was when blood is on the street you buy. 

The reason for my 60% philosophy is Market Swings, I generally get Commercial notes, so 3 or 5 year terms with 15 year amortizations, the 60% LTV insures if my not is due for renewal in a down market, I will still have adequate equity to refi, considering here in WI we typically dont see 20% value drops in a downturn, but if we did I would still have a minimum of 20% or more equity in a bad time to refi.

It can be good to think of Seller Finance as a CONCEPT, then, think of the tools within the concept are generally 6. 3 are CONTROL tools and 3 are OWNERSHIP tools.CONTROL seller finance tools are:Lease Purchase - lease agreement and purchase agreement - expectation for buyer to perform Lease Option - lease agreement and option to purchase - option to buy, but NOT an obligation to buy - many investors have differing philosophies on this.. .some do lease, option and purchase agreement(all 3, but seperate, some do lease and option only(combined in 1 contract) and some do lease with an option to buy only(seperating the option from the lease).

The first task everyone should do is to find their personal investment philosophy. 

I could explain in great detail the political background and funding philosophy of the city/county after working in government relations for more than 15 years, but its probably not worth it.I agree you need to find a great property management here locally.

I would word it a bit differently, and my focus is on a different aspect, but the philosophy is the same.