Typical structure
Investors generally cap cash-out around 80% of appraised value for a primary residence, tighter for second homes and investment properties. In Newport, Irvine, and coastal cities, that still leaves a large number because values are high.
The new loan must make sense after closing costs. If you are pulling $150,000 to build an ADU that will rent, that is a different analysis than consolidating a 19% credit card.