Sell v/s Refinance - Bay area

[Sid Naik]

Fellow BPers ,

Bay area prices have started correcting .

My condo is 15% off April high . From 700k in April 2018 to 595k now .

Inspite of that I still have 300k equity and am faced with the question sell or refinance and have 15% COC return for the last 5 years ( in equity ) . Breaking even on cash flow .

I  want to go the cash flow route in out of state .

looking for advice to choose from below options .

1) Sell to cut further losses  and pay taxes and put money in CD for 2/3/4 years and then invest into cash flow properties out of bay area whenever there is RE correction all over . I believe NY, california leads the charge and soon the impact should be felt in many markets .

2) Keep the property and refinance during recession . My equity would have been further reduced but I can pull $$ from my other property as well . The negative cashflow which I will experience from california property will be made up by the positive cashflow in out of state property so I am thinking why do i need to sell ?   This way even if bay area property market starts recovering due to low interest rates i will still be covered .