No. Laws changed in 2018. If you did a cash out refi, you can only claim that percentage of interest equal to the percentage of your refi that was your outstanding balance at the time of the refi. It's a SCH A deduction. What you did with the cash is irrelevant in your case. Having used it to pay off a rental means that the rental is no longer collateral on any mortgage, as you now own it free and clear.
So if at the time of refi you owed $50K on your primary residence and you refi'd for $100K, thus cashing out $50K, only 50% of your interest on that refi loan is a SCH A deduction for the life of the loan. The other 50% of the interest is not deductible anywhere. Here's a few exceptions (not all inclusive)
If you used any of the cash out money for property improvements on your primary residence, that adds to the cost basis of that property and you can include the interest for that amount as your SCH A mortgage interest deduction.
If you used any of the cash out money for property improvments on your rental, that adds to the cost basis of that rental property. You can include the interest for that amount as a SCH E mortgage interest deduction. Just be aware that tracing rules apply, and if audited you will have to produce a paper trail to prove that cash out (or any part of it you are claiming as a SCH E deduction) was actually spent on the rental property, and that the expense was in fact, a property improvement to that rental property.
