Refi now or wait?

[Brandon Griffin]

Hi BPers,

Here is the scenario. I purchased a primary residence in 2010 for 190k. Zero down VA loan 4.5%. Home became a rental in summer 2012.

Similar homes are now selling for 225k. (Conservatively) 

Current loan balance 155k.

Current rent is $1620  

Mortgage is $1300

Before I found BP I was planning on doing a refi just to get a lower rate/ lower the mortgage/ increase cash flow.  But now i'm considering a cash out refi to put towards a second rental property.  

Whats the better strategy?  Increase cash flow on investment 1or cash out to put funds towards a second property?

Thanks!