Cash-Out Refi or monthly Cash Flow??

[Bruce S.]

Nearing retirement; I have a number of SFR's in two states. If you listen to Jason Hartman he says to cash-out refi and get tax free income; (cash). Then Dave Ramsey says he never met a multi-millionaire that carried debt...

What's better in retirement? 

1) Having monthly cash flow with bi-annual increases? 

<or> 

2) Cash-out refi with renter's carrying the debt and a wad of cash in the bank?