Cash-Out Refi Yay or Nay???

[Thomas Hubbard]

Hey everyone.  I am in North Dallas (not sure how much that matters) but I'll get straight to the point.  I have one rental property I owe $136k on it.  Its worth in the neighborhood of $230k.  I want to do a $50k cash out refi to buy another rental or two this year.  Lender is offering a rate of 4.875%.  My current mortgage rate is 3.5%.  Closing cost would be about $3k.  So to my question,  is it smart to increase my interest rate AND my mortgage balance to make this happen? Should I only consider the refi if I can get a lower rate than I have now or is this all in the game so to speak when getting cash out? Let me know.  Hopefully I have provided enough info