Sell [to make cash work harder elsewhere] or not ?

Question

15 months ago we moved out of 3-bed/2-bath condo in Chicago to a 4-bed house. Rented the condo out rather than sold, but now I'm wondering if the potential cash in it can be working harder as I look towards building a cash-flowing portfolio of REI with long-term ROI/appreciation as focus on buy/hold rentals out of state - probably turnkey SFR in TX, OK, OH, FL, AL at first.

Should I sell, stick, cash-out-refinance?

(I do have enough cash to make 2-3 purchases without this, but thinking ahead for financing after that)

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Property value: $525,000 (bought for 495k in 2015)

Renting for 3600/month

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Mortgage Payment (Principal and Interest): $2361.60/month

Property Tax: 651/month

HOA: 299/month

Property Management: 0

Occupancy: 4% / Tenant Placement: 1 month rent.

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Loan Principal Owing: $286,000

3 years into 15yr fixed-rate loan @ 2.75%

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Ideas, thoughts, considerations, links to articles and calcuilators most welcomed. Thank you!

Federico Gutierrez · Answer

2.75% FIXED! That's cheap. Makes it hard to sell with that low of an interest rateIt's Chicago, turn it into an AIR BNB and you might see better cash returns depending on where it's located

David C. · Answer

Yeh, I locked in that 2.75% when i had the chance few years back when it was my primary residence. Cash-refi (now as rental), or selling to buy another rental would give this up (currently around 4.5% on 30 fixed) Hence why this isn't easy decision.

The condo would make a great AirBnB - it's in the hip Wicker Park neighborhood, but the HOA/condo association is strict and impossible to do sneakily - only being 8 condos, 6 of which owner-occupied, all very vigilant.