Does this make sense?

[Jacob Laginess]

Not sure if this is in the right place, since it's not a true BRRRR, but it closely resembles that...

I own a rental in the Pensacola, Florida area (I live in Ohio, it used to be my primary residence over 10 years ago).  I've been wanting to sell it because it's gone up in value and I'm tired of being an out of town landlord, and I figured it'd be nice to take my equity and re-invest it. However, my tenants just renewed their lease, so I'm looking at another year of collecting easy rent checks. 

Anyway, I thought about looking into doing a cash-out refinance to go ahead and tap some of that equity while keeping the rent checks coming (I'm probably also going to look into a property manager, but that's a different discussion).  Here's what I'm looking at, as far as numbers go:

Current Mortgage balance: ~$120,000 / Current House Value: $~200,000

Current Rent: $1,450

Mortgage (P&I): $580

Monthly Escrow: $150

If I refinance, it's looking like it could increase my monthly P&I by roughtly $150-$200. The current loan is a VA loan, so I'm additionally debating between keeping it a VA loan or transitioning to a conventional loan.

Any thoughts/advice?