Rental Property: Sell or cash out refinance?

[Jason Julius]

I own a rental property that has appreciated greatly and am trying to decide whether to sell or do a cash out refinance.

- Purchased for ~$350K, with about ~$225K left on the mortgage. 

- FMV of property is ~$650K

- Property is cash-flow positive netting ~$7K annually 

- The property used to be my principal residence and if I sell  soon I would be exempt from paying capital gains taxes on the sale proceeds.  

Any advice would be greatly appreciated, as this is my first rental property.

Thanks.