As I recall, you will have 60 days from the closing date of the refinance, to close on the purchase of the rental. Then using the tracing rules you'll be able to claim the mortgage interest against the rental.
So keep all paperwork associated with *everything* on this, and keep it forever in case you're ever audited on it. Three rules to keep in mind when dealing with the IRS on these matters.\
1) You are guilty until proven innocent.
2) The burden of proof is on the accused (that would be you!) and not the accuser.
3) If it's not in writing, then it *did* *not* *occur* and you lose.
