Cash out equity, or pay it off for full cash flow?

[Shuai Zeng]

Hi All,

I have a purchase rental back in 2013. Currently it's still a rental, and there is a nice chunk of equity due to appreciation. The remaining balance on mortgage is about 40K, and market value at 160k; also rented at 1.1K. I'm currently under purchase contract for my 2nd rental, so I will be out of cash after this purchase. I do like the ideal of full cash flow, but I also like to have some cash on hand. Would you guys take out equity out of house or pay off remain balance and milk the cow for the cashflow? 

Also the refi I checked before is asking 10K as fee to refi and I would only get about 50K cash. It's positive cash flow at the moment.