How do you know if/when you should refi

[Amy Ranae]

Hey BP. 

My first rental is going great, all rented out and cash flowing like $650ish/mo. I've got about 65k equity in it. I've never done a cash out refi before, I think I grasp the basics, but is it worth it to just pull that cash out and sit on it until I find my next property because then my cashflow would go down to cover the higher loan amount, yes? I know there are circumstances where you can leverage the property without actually pulling the cash out of it but I am not crystal clear on how that works. 

I made an offer on a second rental townhouse possibility a few weeks ago but lost in multiples and I think it was because my goal is for a multi fam 4+ unit so this wasn't the right one. I am saving up for downpayment and researching buildings in my area that are non-entity owned and have no mortgages. I would like to get a building by fall so I want to have my downpayment figured out before then. 

So the Q. Do I refi and pull the cash out and take lower cashflow? Or figure out how to just leverage the equity? 

Thanks!