$700k equity 2.7% what to do... Not a real estate guy!

[Jay Scott]

My wife and I own a 5 bed, 4ba 3200sqft on 1 acre in suburbs east of Seattle, bought 2013 for $385k. Refinanced in 2019 at 2.7 with some cash out, house appraised for 1.1 mil at that time, we owe $350k. This is our only property. Mid 700's credit, no cc debt, 1 car payment. 

We have 4 kids, 18 and 22 and both work and support themselves and continue to live downstairs rent free, so they are quickly building savings. Then an 11 and 13 year old. This was not intended to be our forever home as we would want to downsize the residence and upsize the property as kids age and move further away from the exploding development here. But selling this place at any point in time now seems a terrible idea. 

Our income is modest as my wife works part time, let's say around $120k/yr, not a lot of disposable income but we're comfortable. I'm diy with general construction, homebuilding/remodeling and site development background so flipping and brrrr scenarios are appealing as it's work I would be able to complete on my own and through personal contacts in trades. But it seems inventory is low and prices are high, in my uneducated view.

I feel like we were dealt a good hand here and have made good choices to live comfortably in this situation. However, I know next to nothing about real estate investing and I'm constantly wondering if sitting here on this equity and doing nothing with it is merely a wasted opportunity. I feel like we may be in a favorable position to leverage this home and potentially begin a real estate portfolio and/or generate income, but that's merely a guess on my part. I'm looking for some advise on how I should begin to explore my options here, or if there are even any viable options to explore. 

Sorry the long winded first post, I look forward to reading some of your all's thoughts on my situation. 

Thanks, Jay

[Jason Wray]

Jay,

Do not let a lower rate hold you hostage from buying more real estate and making more passive income. Mortgage rates have been dropping back down since December and they will continue to trend down this year. You may not see a 2.70% come back for some time or ever but you will see 4's and 5's come back. That being said I would take out enough cash that will not stretch you out beyond your means.

Take that cash and focus on cash flow and properties where you can add value or renovate and borrow off the future ARV. Keep in mind as you borrower money and buy more real estate it will return the cash through future equity to borrow and pay off previous debt. It will also offer you a passive income through the rents of the property to help pay the debts off/down.

Might also be a good idea to look at a few other states like Oregon Coast great STR/LTR opportunities. You also have Indiana and Ohio where you can get a good house at a reasonable price point.