Interest Rate/Cash our Refi Conundrum

[Tyler Jordison]

Hi y'all, 

I am looking for advice on my next step regarding financing to acquire my next property. Here is my conundrum: 

I have a duplex that I house hacked back in 2018. Current estimated value is 315K. Mortgage balance is $166K. Loan is an FHA loan at 4.25% and I am of course still paying that PMI.

Through my current loan servicer I can do a cashout refi and get around $55k equity out of the property, which I would use to by my next duplex. The new loan would be 30 years at around 8.15% interest but of course not have PMI (also no fees, points, etc since they are incentivizing me to refi with them as my current servicer). Although cashlow does take a hit I will still be able to make a decent amount per month (~$400/500).

My biggest blocker to doing more deals in financing, which is why I'm taking a look at this option. 

My questions: 

Is this something you would consider? 

What are some pitfalls  I'm not thinking of that I should consider? 

Is this even a good deal or should I keep looking for more cashout refi options? 

Thanks!