Should I Do A Cash Out Refi On My Primary to Pay Off A Rental?

[Eric H.]

I am about to refinance my primary mortgage from 3.75% down to 2.875% and am considering doing a cash out refinance to pay off a rental I have with a 5.875% rate with $57k left on the mortgage. Crunching the numbers it looks like my primary mortgage payment will go up about $140 while I will drop the rental payment of $345 for a net increase in cashflow of about $200 per month. My rental is in my name and not in an LLC.

Think I should do this or just refinance the primary and drop my primary mortgage payment by $100 and leave the rental leveraged?