I'm at a crossroads: should I refinance now or persevere and pay down another $40,000

[Mario Morales]

Here's my situation: I accumulated credit card debt to finance my last property rehab, which is now rented and generating income. However, I'm burdened with credit card debt, a HELOC, and a personal loan. Despite holding a W-2 job and taking on a side gig, I still have $80,000 in consumer debt and a $130,000 HELOC. Last year, I managed to pay off $40,000 in credit card debt, and I aim to do the same this year.

My rental income provides around $4,000 surplus, but with $3,000 going towards debt repayment.  I'm left with only $650 in disposable income. My saving grace, is that mostly everything is pretty new, so hopefully no big problems coming my way...

A part of me is inclined to refinance now, which would increase my rental income to $2,300 from the current $650 (I do have access to 20K for emergencies, a credit card). If I cashout refi one property , that would resolve my debt issues, but I'm torn. I'm considering holding onto my side gig, paying down the credit card balance, and refinancing when rates drop to 5%, even if it takes until December or so. This  would allow me to pay down an additional $40,000 of debt, leaving more funds from the cash out refi for rehabbing a non-income-producing garden unit in another building that I have sitting there. I have another property that has equity but that one should pay for the next property purchase and rehab, so I want to leave that one alone.  My side gig allows me to pay down 2K a month in credit card debt and I have about 14K coming to me, that I'll use towards my debt as well. 

Any advice on navigating this dilemma would be greatly appreciated. Thank you.

See Pic, refinancing at a 7sh %