Sell house or Cash out Refi

[Lori Weatherby]

I have a house that I have owed for about 12 years. My sister was living in it just making the mortgage payment so it has not been a cash flow situation. She moved I have spent approximately 10K out of pocket on upgrades, which doesn't sound like much, but my husband and I did all the work.  I owe 58K it appraised for 160K.  I think I would more likely get 150K if I sell, but it is hard to comp as it is rural, no restriction area. Anything goes and people do not move out of there often.  Mortgage is currently 775. mo. I have a renter for 1100. mo. It is in a highly desirable school district and is about 35 miles from where I live now. My husband and I want to invest in multi-family, but need the equity from the house to do so. Should I sell the house or cash out refi and keep as SF rental property? I can get a lower interest rate, but I think a  full cash out refi will increase my payment thus lowering my cash flow. So, I am not sure of the best option....open for any suggestions.