My best Cash Out Refinance amount for first rental

[Colin Paulino]

I’ve been increasing my financial education and now I’m working out the best course of action using a cash out refinance to purchase my first rental property.

My house was purchased for 200k and is now worth 400k.  I owe 130k on the original finance of 200k.  I don’t have any debt other than my home and car but my income to expenses is just above breaking even.  My concern is taking out too much with a cash out refinance will increase my monthly mortgage dues putting my expenses past my income.  

Would it be best to only pull out 70k so my mortgage doesn’t change too much (besides a 1.25% interest rate difference)?  
Would I be in trouble taking out too much (for example taking out 150k for a down payment in rental) and in turn making my mortgage beyond my income?   
Is there a way a smart investor can pull out an increased amount without affecting their mortgage in the way I described above?