To cash out refinance or not to cash out refinance

[Khemaro N.]

I currently own a duplex for two years now with mortgage payments of $1903 tax/ insurance included and 28 years remaining. My original loan is $308,000. I'm living in the property with family so currently I'm not making any rental income off it but if I was to rent out both units gross rent would roughly be $2700 monthly. I have a car loan that cost me $514 a month with 4 years 7 months remaining. My mortgage and car payments combine $2417 a month. I'm not having any trouble making payments. I could cash out $40000 and refinance my mortgage with the same rate and 28 years term, and payoff my car loan. My mortgage payments would go up to $2100 a month but I'll be saving roughly $300 a month also I'll have some cash left over. Now would this be a wise decision to do??? My biggest concern is adding more amortization debt to the mortgage....