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I remortgaged my first house and took out $100K for a down payment on a second house. Maintained 20% equity (no PMI) in the first house; rented it out and covered the new mortgage.
Sounds dicey
Only dicey for the bank. If you can swing it go ahead just wait two months after you draw so the draw doesn’t show up in your statement history
Levering up is dicey for individuals as well. Bankruptcy isn't fun times.
You must be able to fund this idea of yours. Not only are you paying interest on the first mortgage, but you're now paying interest on the credit line as well (double interest). As soon as you put that money down on a third property, you're now paying triple interest on the same money. In most states, mortgages are amortized over the life of the loan, not monthly. There are ways to mitigate this, but you have to do the math in order to make it work.