Conventional Loan OR refinance existing property?

[Dilini Sundaram]

Everywhere I look I see investors using the BRRRR model. I purchased properties in cash just to pilot my real estate endeavor with minimal risk, but now want to start leveraging the bank. Property I bought for 178 in 2018, now worth 220. Should I do a cash out refinance to fund my next rental to capitalize on the increased value or a conventional mortgage? If I did a cash out refinance I would buy in cash with those funds, because I do not want a mortgage on top of my refinance rate. Also, are there any big red flags I am missing in regards to refinancing vs conventional mortgage? Look forward to hearing any and all ideas!!