Right Time for Cash Out Refinance on First House Hack?

[Richard P.]

Looking for some advice / perspective: 

I'm about 2.5 years into my first house hack, a 2-unit multi-family. I got a great deal on the initial mortgage. 0% down, no PMI and a 1.68% interest rate for a 30 year loan. The downside to putting 0% down is that it was going to take a long time to build at least 20% of equity in the property in order to do a refinance and use the cash-out to put towards another property. However, now that this house hack has appreciated in value significantly over the past year, I now have at least 20% equity in the property and a refinance is possible much sooner than I anticipated.

I was just pre-approved for a cash out refinance (3.375% for a 30 year loan with a cash-out of $13,000). The new mortgage payment would be $176 more than what I'm paying now. I could get the interest rate down to 3% with a points buy down. That would make the new mortgage payment $137 more than my current payment. This is the first pre-approval I've gotten so I can still shop around a bit. 

Is this refinance worth considering and would now be a good time? My initial plan was to refinance in mid-2023 via BRRRR strategy. I'm hesitant to lose my 1.68% interest rate but I'm also eager to continue building my real estate portfolio and take advantage of the current low interest rates. Keeping the current mortgage would certainly not be a loss but I didn't want to sit out on a good opportunity to refinance. Any thoughts are appreciated! Thanks!