Better to pay off property? Or save for another?

[Vincent Plant]

I currently own a rental income property. It’s worth about $75k and I owe $50k on it. It is currently cash flowing $650/month. Currently, my goal is to add as much passive income as possible so naturally I am saving for another rental property. I’m just thinking, what if instead of buying another property, I just splurge and payoff the $50k mortgage and instantly raise my cash flow to $1,150 (owning the property outright). Then, I would plan to use a cash out refinance to pull the money out of the house and dump it on another. Is this a good idea? Or should I just save and buy a new property the traditional way?