Advice on Reallocating equity

[Yon Chung]

Hello All, I would really appreciate your thoughts on my situation now.

I have two rental properties.  One of which, I am seriously considering Cash out refinancing at a bit of a higher rate (4.125% 30yr) then a regular non-cash out refinancing at 3.5 at 15yr.

I have about 360k in equity and will be refinancing either 130k or 200k with cash out (of 70k).

Does it make sense for me to take the higher rate for longer period and do the cashout?   

   -Pros to Cash out: it will let me leverage my equity to purchase more rental properties.  Longer terms will bring down my monthly expense which will let me borrow more money.  

   -Cons to Cash out: It will take 30yrs for me to eventually get my full rent as my passive income.  Most of the rent will go toward interest expense

   -Pros to no Cashout: I will be done paying off in 10 years.
  -Cons to no Cashout: I will have to wait year to save enough to put a deposit on a smaller investment property.

I have college expenses to worry about starting in about 6 years.  I don't know how I will utilize my rental properties to pay for that (what are you experiences?) and possibly have enough properties left after sending 3 kids to college to afford my retirement.

Thanks in advance for your insight!!

ps I am not looking for hard cash or private investors.