Should I Cash Out Refi to jump start some out of state investing?

[Veronica Haniger]

Hi BP! I'm new to the real estate world and am thinking that in addition to some of my savings, I'd like to use some equity from my primary residence to purchase an investment property.  I'm not a math whiz and it seems to make sense to me to do the below cash out refi but I know there are smarter people on here that can hopefully offer some input.  

Current Loan: 

• 30 year fixed rate @ 4.25% (just closed a refinance in April) -Monthly Payment of $3325 + $900 taxes and insurance = $4225 monthly

Cash out Refi: 

• 30 year fixed rate @ 3.875% - Monthly Payment $3375 + $646 taxes and insurance (lower as I'm adding an Escrow account) = $4020 + $4773 in fees + $4715 total prepaids (taxes and insurance).  
• Cash out = $41k