Should I refinance one of my rentals? Im on the fence about it

[John Nisewonger]

So I have this deal to refinance with no closing costs through my current note holder.  I am on the fence about it though on which way to go.

I have a rental that I rent out at $975/mo and current mortgage is $662 and is at 6% interest rate.  I have about 17 years left on the note. I have a second mortgage on it for around $36k that paid for another property awhile back and will come due for pay back in next couple months.

I can refi and prob save about $80/mo if I keep the years remaining the same or I could refi back to 30 years and save like $260/mo. in which I would use to repay back the second mortgage.

The kicker is the current tenant was talking about possibly buying the house from me in the next couple years in which I would gladly sell it to them. I could sell for $130k and pay back the 2nd and remainder and walk away with around $22k.

The property I used the 2nd mortgage money for makes no money and I would be in the hole if I sold it as I bought it during the housing market boom so that one I am def. keeping for some time.

What would you guys do?