Tax free retirement income strategy

[Michael Perreira]

Hello,  just wanted to throw a strategy out there for tax free retirement income.  Refi ladder: for purpose of this posts we'll say we finish with 30 properties, all with 15 years of equity and payments on a 30yr note.   Does it make sense to cash out refi 1-2 properties a year to replace or take home income from our w2?  When I look at what I earn vs what we keep its drastically different,  and since I don't know what the tax rate will be in 30 years (I'm 40 yes old) or what state we'll be in,  I want a strategy to replace take home pay.  Cash out refi are free from income tax correct?

[Steve Vaughan]

@Michael Perreira what's nice about paid off rentals is you don't need to go through the pain and costs of refinancing. The cf is enough for most of us to not have to bother. 

The pain and costs will both be higher without a w2.