Sell or Refinance? Or...?

[Laurie Falk]

 I haven’t purchased an investment property yet (outside of my primary residence kind of being a live in flip). I’m not ready financially to do so today. 

However, I’m considering selling my house to cash on out on the equity. I’m not positive that’s the best choice though. Thoughts?

- bought house in May 2016 for $212,900

- Mortgage balance is around $182,000 at 3.5%

- I’ve put around $15,000 into it

- 2017 tax assessment: $225,000; 2018 $250,000

- would list for $269,000. I’m a licensed agent so wouldn’t have to pay the selling side commission

I’m super tempted to sell. I love the location and lot but not such a fan of the house. It’s definitely a sellers market— which is good. But it’s a sellers market— where will we live? I’m not paying what people are asking (and getting) for houses in my market. Having an extra $60-70k in the bank would put me in a better position to jump on a good deal though. We could potentially rent for a bit until something comes up. Would end up spending more monthly on rent than the current mortgage though.

It also just occurred to me that I could refinance and get some cash out. Not sure how worth that would be now that interest rates are a point higher than where I am.

What would you do?