Starting out as first time landlord need help to crunch numbers

[Manish P.]

Hello BP members,

I am a homeowner in MD, trying to crunch numbers to decide if I should move to TX or not.
My current home A has 320k left on mortgage from 400k @2.5%, with remodelled kitchen and bath. 
Current valuation of home is about 580k. Rental approx at 2900/pm. 

For new home B, It will be 7.5% for 550k. 
Any pointers on how should I run numbers to compare two cases.

Case 1:  Rent home A, Buy Home B @7.5%, with potential refinance at 3.5-4% ( ifff thats feasible ) after 2 years, once the rates are down. ( i know high hopes , but I dont think 7.5% is the new normal ).

Case 2: Sell the home, get equity out, pay the whole equity ( dont know if thats wise ) towards downpayment of home B, reducing loan amount to approx 320k. 

As a side note, feel free to throw suggestions and let me know its a dumb move to buy property as primary residence and pay 7.5% mortgages, sit out. :) I wont mind at all. I am here to catch your brains and help make a decision.

TIA !