The only downsides of this are 1] if your existing income can't cover the new, higher, payment, you will have to eat some of your see corn every month, but with rates the way they are today that's a relatively low cost. 2] A more pressing risk is that all that cash in the bank will burn a hole in your pocket and you'll feel pressure to buy a sub par rental just to get your money in the game. 

That's a numbers game, as you might have to reach out to 100+ landlords before finding one that will take a chance on you.

Leverage is the name of the game.

You now owe capital gains tax on $29k, which is the amount of money you took out that was above and beyond your "skin in the game."

I would sell now while the market is high and go buy STRs where they welcome them.....fighting City Hall is a long losing game.....

Okay, I'll get off the soapbox now.He made the basement into a game room with foosball and a ping pong table.

Rent increases and appreciation seem to be the name of the game in my market currently.

At the end of the day, its really a numbers game. 

Then get in to the game. 

I know I can be successful in the RE game, but trying to be cautious before making a mistake that will leave a deep scare.