Generally agreeing with both @NCperson & @Opus 17 whereas 26CFR 1.163-8T does allow and require allocation of interest ( for expensing purposes ) based on allocation of "loan amount " usage, what I struggle with is how do you trace ( and prove ) the distribution of funds acquired through a refinance ( cash-out) to various business ventures especially when the life of the refinanced loan is different than the life of the investment. That is why I stayed with the simplistic view of stopping refinanced loan at the home mortgage , to the extent it is used for qualified purposes. And also suggested the poster to see a lawyer and set up a structure ( flow through or otherwise ) such that the monies loaned to the investments are traceable through direct loans from the investor., essentially allowing subrogation of the loan interest
