Advice for new landlord

[Bryan Sims]

Hello all, I indirectly became a landlord when my house in Youngsville, Louisiana did not sell.  It has been rented for 1 year now and I have 2 years remaining on the contract.  I've relocated to the Houston Texas area.  Even with this home not ideal for rental, I've seen the potential of generating income.  Especially if the home was closer to me where I could perform routine repairs.

Currently this rental is financed under a 15 year note, I'm only cash flowing about $300/month after mortgage, taxes, and insurance.    My gains will come when I sell the house in 2 years.  I currently have 52% equity in this home.  

I'm considering a cash out/refi on this home to a 30 year note. I would maintain 20% equity and have approximately $100k in cash. This would increase my monthly cashflow and I could transfer the title to a LLC. I would like to use the cash as a down payment to purchase 2 rental homes in my area. I'm sure some of you on this forum have experience with a similar situation. What are your thoughts? I'm sure there is a better way to accomplish what I'm attempting to.