Cash out refi? What would you do. Got a scenario....

[Justin Palamara]

Here is the story. I own 2 investment properties in NJ. One is generally new (i used a heloc on my primary for the downpayment.), and the another i bought in 2011 for 335k have a 15 year fixed at 3.375, and the property is valued now at 465k. 

Im itching to buy a 3rd. My only real option (that at least i've come up with) is to do a cash out refi on the 2011 property, converting my 15 year @ 3.375 into a 30yr  @ 4.5, and taking out approx 115k to finance the 3rd property. 

Would you do it or just hold off?

Pro:

- Obtain a 3rd property

- Possible appreciation

Con:

- Losing a 15yr fixed @3.375 for a 30yr @4.5. My payments will stay about the same.

- Depreciation due to rates: Rates are eventually going to go up, what will that due to home values?

Welcome thoughts and views.