I would need to qualify for a new mortgage of about 580K @ 80% LTV.Our combined TDS between our two current properties is about 34%.

We many clients that have different advantages and plans for investing based on their unique situations. 

Every path in RE is unique.

I was under the impression that I could combine both mortgages into a single new one and pull out my equity in both the homes.

Bump up repairs and CapEx to 15% combined. 

As far as your analysis goes:You'll likely need 6 months to refi with a new appraisal.You can probably pull repairs and CapEx down to 15% combined.

I am contemplating to using if this is good strategy.I am thinking of doing a refi 30years in an investment property and do a cash out and do a refi cash out on a Vacation property that was bought for cash and rehabbed and then apply a combined lumpsum payment to my primary home that I am paying a good amount in interest $1200 and there by increase equity and get a heloc open for use for the next coming investment.

Could it be a combination of the two?

But these are a couple unique ones that we've been struggling with.Tony

*I'd like to quickly add that my ultimate goal is to utilize a combination of judicious flips and long term rentals as a vehicle to build enough passive income to quit my job and finally LIVE.