Can't Decide...Cash Out Refi? Sell & 1031? Payoff? HELOC?

[Justin M.]

I am exploring some options for one of my properties that I've had as a rental for almost 9 years (owned it since 2002). There is about $200k of equity in the house and approximately 10 years left on the loan. It has been rented to the same great tenants going on 9 years and I don't expect them to leave anytime soon. 

I am trying to figure out the best way to start leveraging the equity and putting that money to work, without creating another payment for myself. I have been evaluating most of the common approaches but would be open to feedback or other ideas I missed?

My investing approach is long term buy & hold with a goal of eventually generating enough cash flow to cover my expenses. Time horizon is ~8 years. Or, basically, by the time I am 50 (preferably sooner) I want enough passive income so that I can quit my 9-5 and start doing my own businesses full time.

Thoughts below...

1. Cash-out refinance? With this, I could pull out enough money to buy another property in the Denver market, while still having the rent cover the mortgage. Or, buy more properties in out of state markets where my $ may go further. I am not sure a cash out refi is a good idea however. I have a 3.9% rate on the current loan which has just 10 years left and I would be going back into a 30 year at probably 5.7% rate.
2. Sell and ......   ? Another thought is to sell the house and 1031 that into a larger investment. I think this could go well if I invested that equity into an out of state multi-family where it isn't quite as expensive as Denver. Bad thing is this would most likely mean displacing my long time tenants.
3. Payoff? Keep the house as is and just focus on getting it paid off? I could use the cash flow from both my properties to pay this down quicker then start saving for more.
4. HELOC? I have pretty much ruled this idea out. as I already have a HELOC on my primary residence (that has $0 balance).
5. Something else? 

I think for long term my best bet is gathering as many (or bigger MF) properties as I can, so leaning towards either #1 or #2 and just getting more properties. Thanks for any input.