Hold or sell a luxury STR with $200k+ in appreciation and an assumable mortgage?

[Adam Wachter]

My wife and I bought a lake house in 2021 and jumped into the luxury STR business while also enjoying the property as a family vacation home. We've had modest positive cash flow each year (~$15-20k) and overall it's been a great learning opportunity. I have been self-managing the property and have developed good systems with cleaners, maintenance, etc so while it does take some time to manage it is not overwhelming.

The property has appreciated a decent amount since 2021 (purchase price $1.32M, currently valued somewhere between $1.5-1.75M based on market comps). Our family priorities have changed and we may not use it as much in the coming years, so we are considering selling it to unlock our equity and diversify into other real estate investments (SFH, small multi-family, and syndications).

My questions for the BP community are as follows:

1) Does it make sense to sell this property considering the low interest rate on our mortgage? We have a 2.75% interest-only ARM with no rate reset until Feb 2032, and a loan balance of $1.02M (this is the original loan balance, we haven't elected to pay off any of the principal because the interest rate is so low).

2) I confirmed with our lender that our mortgage is assumable since it is a portfolio loan held by the bank and not sold to investors. How should this factor in to our marketing strategy, and how appealing is an assumable mortgage to potential buyers (investors vs non-investors)?

Thanks in advance for insights/opinions/advice. Happy to provide more info if I left anything out.