Primary home/rental property cash out mortgage

[Amit Shah]

Let me explain my situation/dilemma. I am moving away from NJ to FL. I have my primary home in NJ which is paid off, which i turned into rental (tenants are moving in soon) and purchased another home in FL which will be our primary residence on which we have 15 years loan for 2.75%. we are thinking of getting cash-out mortgage on NJ as investment property (around 60% of market value) and pay off the FL primary residence..  but is this wise move ? on cash out loan our interest rate would be around 4% for 30 years. if I don't take cash out mortgage, then rental income would be my income and it would be put me on higher tax bracket ? what are the pros/cons ? I do not prefer having two mortgages just in case if tenants will not renew the lease (they have signed the lease for 2022 already.)

Thanks