Analysis Paralysis on STR or flipping a beach condo

[Michelle L.]

Hi all, I bought a beach condo in 2020 just before the market went nuts.  I bought it in cash and paid for the rehab in cash.  Then I fell into the trap of getting emotionally attached to the beautiful upgrades and furnishings and couldn't imagine opening it up to short term rentals as we spend about 30% of our time there ourselves. 

Fast forward to today and the condo appreciated 80% since I bought it. I thought about refinancing or getting a HELOC but I don't qualify due high debt to income ratios so I either have to sell to get my equity out or turn to short term rentals but when I calculated the CoC return it's only at 5% because I have so much cash invested in it.

I didn't want to flip but  it seems to be the smartest way to get the equity out of it.  On a side note, I bought a second condo at the beach that is not nearly as nice so I have somewhere to stay at the beach when we go but that is also why my debt to income ratio is so high.  

Am I missing the obvious here?  Thanks in advance as I'd love some advice.

[Myrtle Mike Thompson]

Not sure what market you're in, but I have a couple lenders here in Myrtle Beach who could do a cash out refi based on the unit's projected income if you decide to go the STR route. They don't look at DTI. Depending on the income projection you generally just need to keep 25-30% equity in the property and they'll finance the rest.