Cash out Refi? Or Conventional on first rental deal

[Pamela Morrison]

Looking for first rental deal.  Approved for conventional mortgage.  We own our home through an interest only hard money lender with no mortgage.  House has about $130k in estimated equity if we paid it off.  Knowing the market is softening soon and already starting in our area, should we change the strategy and try for a cash out refi on our home, pay off hard money lender, and shop for deals with cash? Our total payment doing it this way would only be a few hundred dollars more.   I like this option because our monthly debt is far less but I doubt we could get another loan in future.  Advice??