Should I sell or cash out refinance?

[Adam S.]

I need some advice on what to do with my rental property. This was my first property, and although I have bought a couple others since, I still have never sold a property. I'd like some thoughts on if I should sell or do a cash out refi, and what are the pluses and minuses of each.

Here are the details on the property:

Duplex in New Orleans, Louisiana. Purchased in 2008 for $325k. Refinanced in 2009 at 5% 30yr mortgage. I currently owe $260k on the mortgage. Over the years I have put in approximately $40k in repairs and upgrages.

I dont know the exact current value, but given its location, the zillow estimate and a realtor friend's estimate from a year ago, it would sell for anywhere from  $415k to $450k (maybe more).

The property is cash flow positive, but not but alot.... My net for the year is just around $2,000, (though the rent is also paying the mortgage and building equity). I live out of state now, and have a property manager, who I trust (he literally lives next door) and does a good job. My parents and sister also lives nearby and check up on the house occasionally. It has never been vacant, and rents very easily, as it is an attractive house in a very desirable area (uptown new orleans by the wholefoods) where rents and property values continue to go up.

Any thoughts on what I should do with this property? I would like to take the equity from and invest in some better cash flowing properties, now that I know (a little bit) more about what I'm doing.

Thanks in advance for you input!