Buying primary residence while keeping condo- Help w/ strategy

[Anthony Beckham]

I have a condo right now that could sell for a sizable amount more than what I have left on the note.  I'm looking to move into a house, just for more space and use my condo as a rental.  I'd prefer not to sell my condo and I'm trying to find different strategies how I can pull equity out of my condo to use as a down payment.  I would also then rent out my condo for additional cash flow while living in the new house.  

I'm thinking of doing a refinance on my condo-can I use the cash from that as a down payment on a primary residence? I have a 800+ credit score and I'm trying to explore options on how to avoid PMI. I've heard you can do as low as 5 percent down and can still avoid PMI. I'd rather put 10 to 15 down to reduce the mortgage payments by a hundred or two hundred dollars. Essentially, I'm looking at it from a cash flow perspective. Why would I sell my condo and put all of my eggs into one basket? I feel like I can improve my cash flow if i diversify my assets.

Thanks.  Sorry if this not clear.