When to cash out equity?

I am currently in a dilemma. I have equity in a condo of about 25-30k and I am wanting to know if I should refinance now and cash out to buy another property or hold on to it and let the equity grow? The reason I would hold is that the value of this condo is rising 15-20 percent annually. Its in downtown nashville which is a real hot market right now and even at worst 10 percent would be possible.

And, what is everyone’s opinion on buying property one hour away for better cash flow options. The cash flows are much better in a town an hour from here and is that too far away for an investment property?

I often see owners refi and cash out frequently to pull out cash for new deals. It increases your leverage. Otherwise, you have to either 1) sell or 2) wait 30 years to have free cash for another deal.