Sell Rental, Use Cash to BRRRR? | Advice Request

[Casey B Silveria]

Hello BP community! I am a newer investor and strongly thinking about selling my rental and using the cash proceeds (net ~$170k) to begin BRRRR'ing in the Midwest. The rental is an appreciating market (Boise) but I think now is a good time to cash out (no taxes due to primary residence, 2/5 years). Does this sound like a good strategy? What should I be thinking about as negatives/consequences to this plan? 

I appreciate any and all input! 

Casey

[Jack BeVier]

Personal DTI used to be the the constraint to rental portfolio growth. We've been slogging away since 2002 and are up to 762 rental properties. That said, in the past few months the DSCR loans are now at rates that are more competitive than banks. 4 handle interest rate (down to 3.75% with buydown), 75% LTV cash out, 30yr fixed rate, 30 yr term. Those terms make it exciting to be growing a rental portfolio. With inflation on the horizon, I think that hard assets and long-term fixed rate debt are the places to be. My 2 cents.