Refinance for 20% down in 2021 or not?

[Arie Slaa]

Hello Bigger Pockets,

Newer investor question here.  I currently own 2 properties.  condo with tenant.  and townhome i want to move out of in early to mid 2021 to rent out (or sell).  What is best way to purchase the 3rd property?

Condo has about $175k equity, so there is plenty of room to take out bit of cash and still have plenty of equity to weather the 2021 market.

With these low rates.  A NO cash out refinance i could lower mortgage to squeeze $200 more monthly cash flow.  OR.... keep current mortgage payments, and pull out about 40k.  

by march 2021 i should still have enough for a 5% down.

My job is fairly secure, so not to worried about 5% low equity on new primary.  I am more looking at possible lowering rent rates.  even though my tenant is good signed new lease for most of 2021.  he could always leave early, and i am stuck trying to find new tenant at new low rent rates.  going negative cash flow on condo could be a reality if i don't lower that mortgage.

OR maybe the possibility of going negative cash flow slightly on condo worth it for a solid 20% down on 3rd home.