refinance or cash out???

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Hello all. I just have a quick question. I currently have a property worth $124k and the current principal owed is about $58k. The current mortgage is about $600/mo @ 6.8% and the rent is $725/mo. Would it be a better option to refinance for $58k and take the lower mortgage, or refinance and cash out and deal with a higher mortgage, possibly reducing the positive cash flow?

Thanks,

Parallon