Cash out Refi or wait

[David Naphy]

Hi BP community, I appreciate any and all suggestions!

Last year, I purchased a SFH under market at 7.65% interest rate and did some rehab to up the value. As of today, the house rents for $3,400 per month and my PITI is $2,500 per month. There is another house about two blocks over that I have the opportunity to buy off market under market value. In order to do so, I would need to do a cash out refinance of the first property, and was told I can pull out $80,000. If I do this, my PITI would jump up to $3,090, really cutting into any cash flow and the interest rate would jump to 8%. The house that I have the opportunity to purchase, would rent for $3,250 and the PITI would be $2,600. My question is, do I just not touch the first property, use the cash flow to reinvest and pay down the mortgage or save up for a downpayment down the road OR do I pull cash out of the first property to buy the next property? Thanks for all of your help in advance!