Refinancing at a higher rate - worth it?

[Vaughan Moody]

What would you say to someone like me who has a good chunk of equity and is considering doing a cash-out refi to buy a third property, but I’m hesitant because the interest rate on a new, larger mortgage would be about 1.5-2.0 percent higher than the both of the current mortgages? It feels really counterintuitive to refinance at a higher interest rate.

Can you suggest a calculation, paradigm shift or question(s) that I can ask myself, to help me realize that a higher interest rate on a refinance would still be worth it (if the cash out is used for a good property), and help get myself over that mental hurdle?

Any thoughts or suggestions are much appreciated.