Should I sell or refinance?

[Gustavo Delgado]

I own a property with roughly $140k in equity. I've owned it for 6 years and has been lease out the whole time. My last tenant move out 5/1 and I am undecided on what to do. The property is in good cosmetic shape and I don't need to do much to make it ready. Idea #1 was to sell it, pocket roughly $140k and look for other opportunities but I assume I will be on the hook for some taxes next year. I am interested in getting into small multi family and use portion of the $140k for down payment. 

Option 2 is to refi and use some of that money for new roof, water heater and maybe kitchen upgrades and put back on the market to lease for around $1700. 

My current mortgage is $467 with a 4.5% rate. I put away about $550 a month to cover ins and taxes. 

I've just started thinking of this and would like to hear your feedback. Let me know if you need other info for clarity.

Thanks BP community!