[quote=spdrun]Uh, what? It’s definitely possible to get cash out on an investment property, first position loan. Talking conventional loans, not GSE-backed, of course.[/quote]
I’m pretty sure he didn’t say it’s not possible, only that it is harder now than it once was. I also strongly suspect it’s not near as common as some think it is.
Beyond that, I’m pretty sure if this is done for rental property, the interest is not deductible. There’s a 90 day grace period after acquisition for interest on a personal residence. I don’t think there is any such grace period on investment property. There may be a 30 day look-back period that applies, though the IRS rules on tracing are pretty specific, and I’d speculate that these rules are rarely met.
