Does a cash out refinance make sense for me?

[Jacob Tate]

My wife and I are looking to move to a bigger house but are dependent on the sale of our current home to have enough for the down payment. We are wondering if getting the down payment from a cash out refi and then renting our current house would make sense.

Here are the details:
- Need about $35k for a down payment
- Current home worth $275k, we owe $220k on the mortgage, bought it for $240k
- Estimates for monthly rent for our home are $1800-$2000
- Current mortgage payment + HOA + utilities = $1950

Happy to give more details if needed!