Is a cash out refi worth it if interest rate will be higher?

[Pablo Flores]

I have a vacation rental that I owe $370k on with a 3.75 fixed rate. Home is worth 800k now. I am considering doing a cash out refi with 80% LTV at a 5.25 fixed rate investment loan. This would allow me to pull out $250k and buy another vacation rental. The home would still cash flow very well even after the cash out refi.

What are your guys thoughts on this. Worth taking the extra interest rate to pull that money out?

Thanks

Pablo