My brother was a Real Estate Broker for years.  I told him that I was going to invest in a property, Wait one year, do a cash out refinance and use the equity to buy a second Investment property and continue the cycle.  He said you aren't allowed to do a cash out refinance after only a year, but I think he's incorrect.  Isn't this the method used by most wealthy people?  Am I missing something?

Keep in mind that I'll put $50K into a $250K house as a down payment