Cash out refi to purchase??

[Amala Odoms]

I want to purchase my 2nd property using funds from a cash out refi.  I'm not sure if this is a good idea.  I have 70g in equity and the home I want to purchase is only 15g.  The problem that I am needing help with is...if I have a 3.25% interest currently and the bank is offering me a 4.5% cash out refi that will take care all of my cc balances and give me enough to purchase new property, is this a smart move to go from a 3.25 to 4.5%?  Monthly I will save $400 (paying off cc) plus from the new property I will profit $400 (rental).  Any thoughts?