Cash out or pay off? Need advice

[Robert Walmsley]

Here is my scenario, Sacramento California.

Rental property that I owe $145K (appraised at $430K) at 3.6% 30 year, 7 years into the loan, total PITI payment $1080, currently rented to great tenants at $2200 per month.

Have a few days to decide the term of my refi, here are the choices:

15 year rate/term at 2.25% increases PITI payment to $1290, still cash flows great and I pay it off quickly.

30 year cash out ($100k, staying under 60% LTV for rate) at 2.25% brings PITI up to $1380, still cash flows well and frees up $100K for another property. But I restart the amortization and won't pay the house off for a long time.

Not a great time to invest in another deal here in CA but will I kick myself later for not pulling the funds for the right opportunity? $100K at 2.25% is cheap money, plan on just holding it until the right deal comes up. Part of my wants to pay off the rental quickly to increase cash flow to $2200 per month minus tax and expenses.

Need some advice. I’m an experienced broker/general contractor so I know the ropes on finding another future deal and controlling costs but when will that deal come is the question. Thanks for your help!