Buying a 2nd home and renting out 1st

[Carmen G.]

Looking for some guidance here. I'm looking to buy a second home which will be my new primary residence. Then rent out the home I'm currently living in.

I owe about $65k on this home and it's value is $120-$130k. My PITI is right around $700/month. Average rents for a similar home in this area is $1000-$1100/month. Should I refinance what I currently owe to extend my term to 30 years? Maybe cash out refinance to pull some equity out? Leave everything as is? What is my best course of action?

If more info is needed please let me know. Thanks.