Cash out refi is the way to go. Otherwise you are going to have a tax liability for the $100,000. I have done this a couple of times and it works well. Its legal and easy. Check to make sure that your refi expenses are low. There is a possibility that you could realize a greater return from selling the house. But... that means no brokers fees, a good contract specifying split of costs with the buyer and a good position on your tax situation. Good luck!