Selling Low Interest Rate Investment Property to Scale?

[German Fernandez]

Hey BP community hope everyone is having a good year, 

I'm hoping to get others perspective on what they would do with a rental property in today's market. The property is performing well at a low interest rate but has 288k of trapped equity. ADDITIONALLY, I have lived in the property for 2/5 years and would be excluded in the gains tax. 

Three-family residential property

current interest rate - 2.625

cash flow - 1900/mo

roe - 22,800 ÷ 288,000 = 7.9%

location - Providence RI

The property for the most part is stable, other than a few minor cosmetic work that can be done, but the roof, windows and one floor of the property is new. Capex repairs I would include a new - boiler and some electrical grounding. Managing the property is fairly easy and I've had good tenants for the time being, besides inheriting 1 bad tenant in the beginning.

My goal is to scale. More specifically, I would eventually like to invest both here and in Colombia on short term rentals.

I can do a cashout refinance for about 130k and the property would still cashflow around 500-600/mo. However, releasing about 270k can really get the ball rolling for me as an investor. 

I could also use some of the proceeds to pay down some high interest debt Ive accumalated over the years, saving a considerable amount, but I also do have a plan to pay down the debt within a year so it is not a necessity.

As far as other opportunities, I have another rental where I can place about 150k in converting a second floor detached garage into an ADU and cash flow 700/mo (possibly more if the unit works as a short-term/mid-term rental) and force the appreciation about 130-150k.

I would be very interested in hearing what others have to say about this. I don't need to sell but I also don't know how I feel about keeping so much equity tied up when I would like to scale.