Which is better Primary Residence Loan versus Rental property Loan

My primary residence is valued 400K and paid off. I have a rental property that has a 200K loan on it.

I am in need of 20K to do some additions to my primary residence. and I am also in the process of refinancing. My friends were suggesting that I take cashout loan of 220K on my primary residence. Pay off the rental property.

Benefits a) lower rate for 220K b) get my 20K that I need c) tax benefits of primary residence

Is this a good idea?

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Yeah I think it’s a good idea.