HELP! Newbie unsure whether to SELL or REFI rental pty
I thought I'd see what my BP community has to say as I am quite undecided - so here goes. I have a rental property in the metro area of Denver, CO currently est. value sits at around 200k. Initially, I had planned to sell the property and 1031 the money in order to purchase a multi-unit here in Chicago, Il.
If sold, I would likely net around 70k. If i put the entire 70k toward a down payment on a 400k multi unit, that would make total monthly costs around $2,200. Assuming there were 3 units or more (+garden), I could house hack and likely cash flow at least $300/mo.
If re-financed, I would likely net around 32k. If I put the entire 32k toward a down payment on a 400k multi unit, total monthly would now be $2500 or so - likely still able to house hack and it would be VERY close on the cash flow (depends on a myriad of factors). I would also be able to retain the Colorado property and cash flow about $500/mo with the new monthly mortgage.
My research for the Denver metro area suggests, rents and home prices will likely continue to rise at least for the next year or two. My only complaint with the Colorado property is that its so far away and makes landlording/managing difficult at times. In the 10 years I have rented this property out - i have never used a property management company because it was just one property i planned on owning and I did not see the financial incentive to do so.
I have also "read" and "heard" that interest rates are only going up so perhaps now is the time to re-finance but I tend to think that non-owner occupied properties will largely sit at the same rate anyway - right?
BP community - what would YOU do? Thanks!