Cash out Refinance on Personal home

[Nick Causa]

Complete noob but that seems to be ok around here.  2 questions and I have no one to ask advice from.  

(1) I would love to get started with a rental property and own a personal residence that has appreciated from the original $295,000 purchase price to $450,000 in the year and a half that we've owned it (recently had it appraised). We love our house and don't want to sell so would a cash-out refi be a great option at this moment? I know we're saddling ourselves with a much higher loan amount and the rate would go from 3.75 to 3.87 but we would be getting about $80,000 out of it. Also I should mention that we currently only have 10% equity on the house with the $295k loan and while the refi may be a little higher in interest, it will get us to 20% equity AND give us $80,000 while also losing PMI which was the worst idea ever.

(2) Also I can't seem to find this info anywhere but does that $80,000 need to be paid back just as with a HELOC?