Texas: Refinance VA to conventional

[Corey McQurren]

Hello all. I am a relatively new/inexperienced investor and I would love some feedback on a situation I am running into.

We currently own a rental property in Austin, TX that has appreciated considerably since we had it built in 2014. I purchased the home using a VA loan. Since that time my family has relocated to the DFW area, and turned the Austin home into a rental property.

My question is how do you go about refinancing out of a VA loan in Texas? I have seen information regarding the need to keep 20% equity, and I know Texas has restrictions on cash-out refi's. Can you refinance into a conventional and pull money out? Other than potentially losing out on a better rate, are there other concerns when getting out of a VA loan.

I should add that another reason we are looking into this is to free up the VA loan eligibility. We utilized all the remaining eligibility when we bought our second home in DFW and would like to use the VA loan one more time in the future.

Thanks in advance for the help!!