I am having a raging debate with myself over selling a condo using a 1031 exchange to buy a better cash flowing property – or – refinance down from 4.625% to 3.375% to get it better cash flowing.

The condo is in a very nice, expensive area but not the best for cash-flow which is less than $50/month. I used $150k from a 1031 exchange to purchase it in 2006. A few years later as the housing bubble burst it went down in value. It’s steadily going back up but would sell for about $75k less than I paid. Ironically, I would walk away with what I put in - $150k.

I would like to buy a SFH or preferably a duplex where the monthly cash flow could be about $150 - $200. Numbers from my banker show that a refi for 30yr fixed would result in me cash flowing about that same amount. But that is extending my debt and I am not sure it's the smartest thing to do.

It’s a good time to refinance. It’s a good time to sell. But it’s a bad time to buy. I feel like I have brain fog and keep going in circles.

I would greatly appreciate someone telling me how they would analyze this and what do they think they might do in this situation. Thanks in advance!