no...it makes dollars
Owner occupied home? Absolutely, cash out at 75% of the value. Non-owner occupied? Might be tough to get cash out, not all lenders will and forget the cream secondary market loans.
Your title implies to me the "system" of rolling over cash out refinancing, in reality that has several barriers and your ability to pay will become a factor as well as the number of loans as well as loan concentrations to one borrower that lenders will be concerned with, this isn't a go on forever strategy.
Only 2 ways to get a lump sum of money from equity in RE, borrow it out or sell it. :)
Very smart move if you can get the money out at a decent interest rate and if you can find a good deal on a property to purchase.