Need advice and perspective

[Joannie Torio]

Aloha!  I am "somewhat" of a new investor and not...  This is a 2 part question...

I purchased investment properties in 2004 and 2005 with the intentions of buying and holding. One property in the Dallas area has been refinanced into a lower rate and has grown a little bit in equity. My other property is close to Nashville is still upside down and I can't refinance the ARM loan to a lower rate because it's still upside down, that is at 7% currently. I purchased in HI and equity has appreciated to a healthy level, however, I have only owned this house and lived in it for 18 months. I have the opportunity to cash out refi around $30K on my HI house, but am a little nervous because it's the house I live in. I had heard in the past to pick one investment property to cash out refi a little bit at a time to buy more investment properties when I can. What are your thoughts on cash out/refi'ing on an owner occupied property? Then, if I cash out/refi some should I pay down part of the Nashville mortgage so I can lock in a lower rate and refi to pay less interest. Both investment properties are currently rented out are breaking even. I would like to be able to have more passive income for later. Need advice from all of you....mahalo!