Would you cash-out refi or get more cash flow?

[Jason Thompson]

I have a 160k half duplex (60k left on mortgage) that rents for $1300/mo. that I used to live in. There are 4.5 years left on a 15year mortgage that is $1250/per. I basically break even before maintenance etc. I'm also about to purchase another duplex I used to live in that my dad owns that will cashflow about $600 after PITI.

I've gotten numbers on a cash out would be a 30year, $842/mo with 55k cash out = $450/mo giving me $1050 total cashflow on both properties cashflow before maintenance costs.
Numbers on a 30 year refi: $542/mo = $750/mo cashflow giving me $1350 total cashflow on both properties before maintenance costs.

My goal is to purchase more rentals in the 70-150k range but plan on starting slow as im brand new to buying rentals. I could easily add 1k per month into my downpayment fund to go with the above cashflow. My question is should I take the increased cashflow and study my local market (which is pretty hot right now), or take the $55k cash out and reduced cashflow and just buy more right now.

Thanks for any advice!
Regards,
Jason