seeking advice on rental property

[Roshan Jameel]

I have some equity in primary home and I happen to have a rental which is net positive (roughly 300/month). The investment property has a higher interest rate, so I'm thinking about paying it off by refinancing the primary home and doing enough cash out to pay it off. Since the new mortgage is against primary home, I could also get a favorable interest rate. I can do a 20 year refinance and break even if I were to put my primary home out as rental in future (Considering moving out to a new place with growing family.)

Once I pay off the rental (out of state), I would like to sell and move the equity to the state where I live. I would like to invest that equity by putting down some money and buying two smaller homes that could be rental properties with a break even mortage/rental payment. I'm considering 1031 exchange to move the equity.

Any suggestion/opinion on whether this makes sense? Or maybe there are better/creative ways of going about things?