Should I refinance? Investment or primary?

[Kelvin He]

Current properties:

Investment (Value: 550K, Mortgage: 225K, Int Rate 4.5%, (-$200 Cashflow))

Primary (Value: 600K, Mortgage: 285K, Int Rate 3.5% ($0 Cashflow, and I live in it for free)

Goals: Increase net worth, try to purchase another home in August. (will be my new primary) [kinda worried if I'll get approved due to being self employed recently. Working on becoming a real estate agent by June/July]

Lender quoted me to refi for 5%, can pull out about $150k in equity from the investment property. 

Questions - would you take that deal? should I try refinancing my primary instead?

What would you do with the extra 150K? I don't need that much for a downpayment.

[Kelvin He]

Quote from @Reid Chauvin:

@Kelvin He - based on the numbers you gave; you can net about $7,500 more cash out of the primary. Your mortgage payment is definitely going to go up for either property with the higher loan balance + higher interest rate. You honestly probably will need the $150k for a down payment + closing costs & prepaids on an investment property in ATX, as you will probably want to put 25% down with how interest rates are. 

 I'm gonna go for another primary home to live in, and turn my current my primary into an investment. 

I was planning to just do 3-5% down on the new primary, would this change your answer?

Also - is it a bad idea to refi my primary, because the rate is already 3.5%, and I would be increasing the rate just to get some equity out.