Question about refinancing with my situation

[Jesse Fernandez]

I am looking to finance my next deal, but don't know which option I should go for...refinance, 1031, HELOC, etc

I have a 2 family rental property, purchased for 280k a few years ago current valuation is 610k. Net monthly income after expenses is $550, so anual income is $6,500

1) I've always had a lingering thought about refinancing my home, and while I understand that every situation is different, my understanding based on basic economics is that the more the bank gives you, the more your resettled mortgage will be. So here's my question and situation: 

2)If I were to refinance, my new loan would be far greater than what it currently is (230k), additionally I will assume a ~4% rate on say $600k, yes I have the funds to purchase my next deal but it also would presumably increase my mortgage and reduce my net income that I am currently enjoying from this property. Alsowhere I might be paying out of pocket to cover my mortgage now, all in an attempt to finance a second rental property. 

Is a work around simply refinance for less that the full amount, other options?

3) Conversely, would a 1031 exchange be the better option, please note that this was a first time home owner purchased property, so would I qualify for a 1031? I lived in the property the last 3/4 years

4) Also, I qualify for the tax exemption at I believe 250k capital gains, would this be a better option? 

I am stuck and would love to get some advice on how I can better leverage my money from this deal to finance a similar multi family property, preserve the income that I am maintains, with the goal to produce enough passive income that I can retire in 10-15 yrs.  

Thanks all