Refinance opportunity for my rental property

[Lamont Booth]

I recently received a free Home Loan Check Up analysis from my mortgage company . This is an opportunity for the lender to inform me of what offers I have in regards to refinancing or pulling out of equity. One of the offers is as follows: cash out refi totaling $10,000 -closing fees =$7000. New interest rate of 4.8% (currently at 5.5%) bringing my current mortgage payment from $708 to $685.This actually increases my monthly profit. The property is  a 2 story townhouse (1986) that I now haved owned and is tenant occupied by the same tenant since 2010. Current loan balance is a little over $65,000 down from $82,000 purchase price ($10,000 down payment). I know this is not a lot of equity however my plan is to install new kitchen cabinets and some other minor renovations at the property along with paying off the properties credit card ($1100). Any input or advise will be appreciated.Thanks in advance.