cash out refinance a cash flowing property

[Michael Pempin]

Does anyone have experience refinancing a rental property to cash out refi a cash flowing property, only to turn it into a non cash flowing property after increasing loan amount from cash out?  

property as follows:

currently 13 years into a 30 year mortgage (17 years remaining).   piti 1550/month.  loan amount 180k.  3.75% interest rate. 

Looking at option to cash out refi and pay 11k in points to bring it to 2.75% 15 year loan with 85k cash out.  new loan amount 290k.   piti would be 2250

current rent = 2250

looking for cash to pay down a few small debts and have downpayment for another property to be purchased in 6-12 months.

do have option to sell as well while still relative peak prices, but will cost roughly 50k in taxes + commissions and fees.  would net roughly 200k from sale.  

does it make sense to cash out refi in this scenario or sell in a vacuum?