When to sell vs. when to cash out refi

[Austin Tam]

I own a property in Elk Grove (a suburb in Sacramento) that I'm looking at options to free up capital.  We purchased the property in 2011 for 140k all cash.  We've had the same tenants in place since we purchased the property, and they are model tenants in every sense. 

Our current CoC return/cap rate on the property based on the original investment is roughly 7.5%, which isn't terrible. However, the property is worth a little over 300k today. If I take my current cash flow and use the 300k buying power number, my return is only 3.6%. Let me know if this isn't the correct way to look at it.

The Sacramento market has done us well in terms of building equity, but I'd like to start putting that equity to work.  I can either do a cash out refi or sell the property.  What are the factors I should be considering to figure out which option is better for me?