We're primarily interested in vacation rentals, but are always willing to listen to other ideas. 

I have an idea of taking cash out refinance with VA loan (partner has benefit) and rates look to be 5.75% on primary home (owned free & clear).

@Rashid Khalil Not a good idea.

That's a good idea, thanks.

Tenant-landlord law often limits what this can be.Insufficient funds: If you accept personal checks and the check bounces, there is normally a fee.Key/remote replacement fee: If new keys, garage door openers, mail keys, etc need to be replaced for the same tenant, there is often a fee.Breaking lease:  If a tenant moves out before the lease is over there is often a penalty clause. 

Within the city limits, I believe STR are prohibited, so start with understanding the regulatory environment. 

Our goals are balancing costs, limitation of liability, ease of maintenance, scalability and privacy.Proposed structure:1.

(personally, I use a brokerage account so I can get the pretty risk-free 5.25% in a money market fund that is completely liquid).To be blunt, if you really are limited in funds... 

There have been opportunities for additional investment property that we have looked at, and when reviewing with my wife, she did not think it was a good idea.

Is this a bad idea?