Let me ask this; For instance I own a home worth $300,000, and over a couple of years I pay down on loan and own $150,000 in equity, or 50%($150,000) let’s say I want to cash-out-refinance, and get like 80% of that $150,000 cash sum loan, now, let’s say if I use that towards another mortgage, will I really qualify for 3 loans at this point? The first I still owe $150,000, second I took out of $150,000, and now I buy a third home worth let’s say $400,000 and use the $150,000 I got from cashout-refinance, as a Down Payment for the one Im buying worth $400,000 would I really get the extra $250,000 for the 3rd Mortgage or no??? At this point I owe like $300,000 without that new I want to get of $250,000? Do investors do this? At this point assuming you have no other debt, and you have income that supports the debt, with rental income and W2 income? Is this legitimate? I mean would each loan be treated separately as in like, “can you pay for each loan?” Or will it be too much?

Depends on your income/expenses/rental income....DTI.
ALSO, you don’t get “80% of the equity” with an 80% heloc, you up to 80% of the value, less your 1st mtg. In your example, $90k.

I dont see why it’s 90k?

House is worth 300k when appraised. 80% = 240k minus your 150k debt = 90k credit line to play with. I’ve heard of 90% lines however when you’re owner occupying. From what I’ve read it’s pretty costly to cash out refi. Depending on what you’re trying to do a HELOC might be beneficial! Best of luck

Oh so, my debt of 150k from first mortgage will be taken into consideration as debt? Even though, I want to treat it separately?

If thats the case, then me using the 90,000 as down payment wouldnt even work, because the lender will say no, because I owe 150,000 and the 90,000? So then its too much?