Cash out Refi and wait

[Zachary Freeman]

Hi I am looking for opinions on the following strategy. I have a 4 unit property in LA area worth about $1mil with $500k equity. It nets $1500/month after debt service. I am considering pulling $200k out for investment in a new property.

However, unless I find an outstanding deal I am most likely going to keep the cash on the sidelines for 6m to 2yr waiting for some correction in pricing. I will keep the cash in stable low risk investments and some blue chip high dividend stocks in an attempt to tread water until I invest the funds. 

The cash out refi is at 4.6%; the existing loan is 4.3%. I don't want to wait until investment time for the cash out refi because I believe interest rates will be considerably higher. Basically, I am trying to lock up a loan at today's rates with anticipation of higher rates and lower prices in the near future. 

Thoughts?