Would agree with Keith, really depends on what you are going to do with the funds if you cash out or sell.
If you intend to buy another property, and be done with this one, then a 1031 exchange is pretty easy to do...
If you don't need your initial investment capital, and want to hold on... a cash out refi does pretty much the same thing...
Also, if you do cash out, and still are considering selling... verify the prepayment penalty on the loan. Most lenders have a min 6 month holding period on even a 30 yr fixed.... but, some lenders have relaxed this requirement, which covers you in case you refi... then decide to sell...
Really no right or wrong thing to do here...