Sell Single Family Home vs Refinance and Rent out

[Keith Montgomery]

So I thought I would get advice on this specific situation that I had not previously considered. I live in San Diego, CA suburb called San Carlos. I am buying a new home in San Diego and the mortgage broker suggested instead of selling my current home I could refinance and, pull out money, and rent it out (I don't need to sell current home for down payment of new house) I would manage it myself. It is a SFH 1,700 sq/ft 3bed,2bath updated, owned solar, great neighborhood and school district

Currently

Mortgage $2,800 (P,I,tax, insurance)

Purchased at $545,000 in 2013

Loan balance $425,000

Home value $750,000 estimated

Rate 3.25%, 30 year fixed

Sale $280,000 profit est after fees, fixes, closing, etc, I have lived in it for several years so profit would be tax free

Assuming again a $750,000 appraised value

Refinance rate 3%

Refinance cost $3000

Pull out about $200,000

New Loan for $625,000

New Mortgage 3,300 month

I could rent it out for around $3200-$3300 estimated, I would manage it myself

Options

1) Sell

2) Rent

3) Refinance with cash out and rent

It seems like a good idea to refinance and rent, if I did sell, I would invest in other properties like multifamily properties with better ROI. I realize this is an appreciation property not a high ROI property. Thinking of investing in Saint Louis where I was born and raised and know the area. Hopefully I included enough information to give an informed opinion. If not please let me know what information I am neglecting. Just wantt to make sure I am not missing something on such an expensive decision. Thanks in advance for the advice!