Cash out refinance to keep as rental

[Andre Brasser]

Hi BP community,

I recently closed on my first investment property and am deciding on the optimal exit strategy; cash out refi/rental or to flip it. I used a HomeStyle renovation loan so it would be easy to keep as a rental but my main concern is having enough capital to fund the next project (hence why i originally wanted to flip). 

Few details:

Purchased $105k

Renovations $160k

ARV: $350k-375k

Loan: $212k @ 4.875%

Mortgage payment (including taxes,insurance): $1,405

Rent: $2,500

If it's appraised at $375k, I would have $163k of equity in the property. Assuming a bank will allow me to do a cash out refi up to 80% of the ARV, I would be able to strip out $88k for the next project while still keeping this property as a rental.

Am I making any unreasonable assumptions here? Specifically relating to the cash out refinance. 

Any help would be appreciated.

Thanks,

Andre