refinace the rental with cash out, paying off primary residence

[Wendy Y.]

Hello,

Would you cash out by refi the rental, paying off your primary residence? Is this a double whammy proposition?

The rental is a 4 units building located in San Francisco Bay Area.

Property Value   Money Owed        Interest Rate

Rental                               900K               210K                       5%

     Primary                            700K               280K                        4.875%

After refinancing the rental, my primary will be paid off. Basically, consolidate 2 loans into one.

                                         Property Value   Money Owed           Interest Rate

Rental                                 900K                  490K                      4.35%

Primary                               700K                  Paid off

My worries are

-- No more tax deduction advantage for primary residence.

-- Rental property interest rate is not tax deductable.

Am I missing anything else?

Thanks in advance.