Sell or Cash out refi??? Please help!

[Erik Stern]

Hi!  Need some help on a situation. I need some cash to buy additional rental properties.  I have one house that I bought 5 years ago for 85k and is now worth $245k.  The problem is that it rented for $1200 in 2011 and it rents for $1300 in 2016.  My question is, should I refinance it and take cash out or do I sell it?  Either way I would take the cash and invest in properties with a better price to rent ratio.  Thanks for taking the time to read this.

Erik