Cash Out Refinance or Not

[Michael Montana]

Backstory: We purchased our primary residence 3 years ago and now have about 100k in equity thanks to the current real estate market. And with the low interest rates, we are going to refinance our house. We currently have one long term rental property, and we have enough in savings to do one BRRRR.

I'm interested in hearing what you would choose when faced with the following two options:

1. Refinance our home and take cash out to buy an additional rental property. Because of the cash out part, the interest rate is 3.375% and would save us about $100 on our current mortgage payment. This would require a $500 appraisal. 

2. Refinance our home and don't take cash out, giving us a 2.99% interest rate and lowering our mortgage payment by $400. 

There are pros and cons to both, so we're curious what other real estate investors would do. 

Thanks!