Just read an article today saying that you should NEVER buy any income producing real estate that does not have a Gross Rent Multiplier (GRM) of more than 8.iow, A property renting for $1,250 a month, or $15,000 a year should be purchased for no more than $15,000 X 8 = $120,000.I've NEVER been a big fan of GRM! 

if an appraisal will support it and the property is producing income then I'm not sure why you couldn't cash it out for up to 80% LTV

Ideally you can quality for purchasing the rental property without the income the property is expected to produce, which will make the process slightly easier.

Whatever your decision, just do it right that will produce a daily gain.  

Good debt is debt which pays for an income producing asset.

The best to you and your wife in your endeavors.Learn, Apply, Produce!

That project ended up exceeding all of our expectations and is detailed more in this forum post.https://www.biggerpockets.com/forums/223/topics/20...Since the start of my first rehab project in March of last year I've purchased, rehabbed, and sold 5 properties (4 SFR's and 1 Condo) that produced a net profit of approximately $146,000.  

I am constantly amazed at the low quality of work that many agents produce.    

he nodded to him pro forma" adjectiveadjective: proforma1. done or produced as a matter of form."

I've developed my analysis sheets and parameters based on all my research, basically looking for minimum of $300/month CF with 20% initial equity after all costs, and below $20k in cash outlay, producing at least 15% ROI.