Cashout refinance in BRRRR now with high interest rate

[Jason Sung]

Hi BP community, 

I bought my first fixer-upper and took a year to fix it up. I just rented it as Midterm rental and cash flowing well since there is no mortgage. Home is appraised about 450k. 

I am debating two options; 

1. keep it as MTR and save money to invest next deal. 

2. cash-out refi to invest next deal. Rate would be 7.5% for 30 year fixed. To be conservative, I am thinking of doing cashout refi about 200k. PITI would be about 2000 per month.

I am in my 40s and I have my W2 job and plan to keep working for a while. To grow my rental portfolio, I would like to take out some cash but I dont like the fact that I need to pay high interest rate. Would appreciate any advice.