re: Should I cash out refinance my home, and use the money for an income property?

You have a good plan. Nobody can really tell you when is the best time to buy. Distressed sellers represent some of the best opportunities.

Only thing to consider is that if you hit hard times, you could have your own home repossessed.

You never get ahead by being overly cautious. Plan your work and work your plan. Go get a rental!