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Let me take a different tactic entirely.

If your current mortgage is a home (residential, owner-occupied) mortgage, it may have a provision in it that forbids you from converting the property to an investment property without refinancing.

Investment properties are much higher risk for banks and the loans are priced accordingly higher.

If in the process of taking out the cash-out loan you were to "forget" to tell the bank that you were planning to convert it to an investment property, it would probably be considered mortgage fraud.
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