Cash out Refi or traditional mortgage?

[Daniel Michael Phelps]

Between the two scenories, Which one generally offers the better interest rates and lower cost of obtaining the loan when dealing with bank financing?

Option 1) Do a cash out refi on a property that is currently paid in full. Use this cash to purchase the next property and repeat the process.

Option 2) Use a conventional loan with a 20% down payment on a home.

Does anyone know as far as interest rates are concerned if one scenario is better over the other? The cash out refi is appealing as it allows me to come into the next deal as a cash buyer which is always more appealing to the seller.