Education/advice needed on refinancing options

[Jake Edmiston]

Hello all. This is my first post on Bigger pockets. A little background. My wife and I are looking to get more involved in real estate. I have been educating myself the past 6 months or so by trying to read some bigger pockets books and listening to the bigger pockets podcasts from the beginning. We recently sold our primary house and moved to a new home in the mountains which is a place we love to live. With the proceeds from the sale we are in the process of buying a home through rent 2 retirement. We are also using other parts of the funds to remodel the home we bought which we then plan to refinance. 

My question is we have a home that is currently under rent to own. We rent it below market value because when we moved out west we rented it to my wife's old boss and it was an easy option (mortgage + taxes ~$530, rent $600). We would have thought to sell but my wife, before I met her, had it on the market for over a year (it is in a rural area and buyers are limited. House is structurally sound and has been well kept). Anyway the rent to own comes due in December 2023 (3 years). Our current rate is 5.25%. We owe ~38k and selling the house for 75k. I am thinking about refinancing and taking the cash out to buy another home which would generate more cash flow, should I refinance to a 15 yr for the current balance and try to get depreciation down faster, should we keep as is since it is only 3 years away, or any other option that I am not thinking about.  

Any help would be greatly appreciated in trying to determine the best way forward! Please let me know if you need any more information. Thanks!

Jake