Cashout refinance from current house before starting to rent

[Jimmy Jam]

Hello BiggerPockets Community,

I am relatively new to real estate investment, so looking for some suggestions from the wider BP community.

I have own my current place for 10+ years and now buying a new primary residence. My plan is to put the current residence up for rent. However, I wonder if I should take out the excess equity in the current house and use that to fund additional payment (beyond 20%) for my new residence.

I realize that the mortgage interest on the rental property can be deducted from rental income while mortgage interest on the primary residence can only be deducted if itemized deductions goes beyond standard discussions.

On the other hand, if I cash-out additional equity, I am increasing the liability (putting down extra money) on my primary residence.

Any suggestions amongst the two options would be much appreciated. Also, happy to take advice on other options.

Thanks in advance!