When is it best to pay a PMI vs taking out a cash-out-refi?

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Looking for some advice folks! In short: When is it best to pay a PMI vs taking out a cash-out-refi to meet the 20% downpayment requirement?

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Renting such an apt/home would be over $3000/mo in our high colo area. 

I'm trying to see if I can squeeze purchasing a home in this time frame. It's going to be unlikely that i'll come up with a full 20% downpayment, but I have about 45,000 saved for down payment.

I have two rental properties, one of which is clear and free of any mortgage.

The first property had a cash-out-refi mortgage for $45,000.

Closing costs were $6223.90. Which resulted in cash to close of $38,776.

The APR was 4.625. Monthly payment $231.36.

Zillow tells me that my PMI would be $237 if I put 5% down on this home (just an example).

https://www.redfin.com/NJ/Bloomfield/34-N-End-Ter-...

20% is $79,800 down payment

5% is $20,000 down payment

Now, I'm trying to understand the pro's and cons of each approach. My initial thoughts:

Pro's for PMI: Allows rental properties to continue to cash-flow. Avoids closing costs, and ongoing interestm for a re-fi.

Pro's for Cash-Out-Refi: Tax deductible mortgage interest. Tenant essentially pays for the mortage.

Con's for Cash-Out-Refi: $6000 closing costs, reduced cash-flow

Con's for PMI: Stuck for the life of the property. Not tax deductible.

If I do decide on the refinance, is it possible for the same lender to do both, and simply roll the cash over to the new property?

Another option is to go for a 2-3 family, but those seem to cost 500-700. However, in this setup, I would be paying my "share" of rent, while hoping for longer-term appreciation. It wont cashflow. However, It would give me 3-4 rental units as a whole. 

Any guidance would be appreciated!