When should you pull cash out of your properties?

[Tom Smith]

When should you pull cash out of your properties? Won't pulling cash out or doing a cash-out-refinance on a home that has appreciated significantly result in negative cash flow? Should you only pull cash out of a property if it will still cash flow positive and if you are actively investing? Should you ever leave the cash in a property?

I am a relatively new investor and am having trouble with this concept. 

[Joe Villeneuve]

Pull it yesterday.  Your cash in a property is dead money.  If you end up with negative cash flow, you shouldn't have bought the property in the 1st place.  If you pay cash to offset negative cash flow, all you've done is pay for all your negative cash flow upfront.

All the cash, your cash, you put into a property must be recovered before you start to turn a profit.  That means all of that cash costs you money.

The cost of a property to you, is based on what YOU pay for it, and you alone.  Example:

$100k property - 
Option A)  Pay $100k for it in cash...no loan.  Cash Flow = $1000/month
Option B)  Pay $20k down and finance the rest.  Loan = 5% for 30 years = $5160 payments/yr.  Cash Flow = $570/month

How much did either of the above pay for their property?