Just recently completed a cash out refinance to free up funds for my next investment.

.- Immediately refinance the property with a traditional bank mortgage to pull out a significant portion of equity. 

But on the other hand, I’m hesitant to invest in a deal where the margins are thin initially even if I do plan to re-finance.

Quote from @Mark Hudson: Jay, can you tell us about Canadian regs and how the consumer has to refinance after 7 to 10 years? 

The quicker you and the Banker can help them close, renovate, refinance and repeat will help them build their REI portfolio, increase their overall wealth and keep buying more homes.  

you will most likely just lose money.to make this work, you'd have to buy something distressed, rehab it, and then refinance so all the short-term funds - HELOC, c/c transfer, etc. - were paid back. 

You did a loan modification i'm assuming not a refinance and you received a partial claim.

If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.

@Laura CasnerFocus on quality over quantity in real estate investing, celebrate progress, refine criteria, explore secondary markets, and explore different property types.

Seems wise to leverage a smooth program that has been operating and refined over the years.