Should I sell, pay off principal, or save? (negative cash flow)

[Kelvin He]

Hello -

I am a 24 yr old. who owns 2 houses - recently my monthly payment for my first house went up $300 and it's making me reconsider my investment.

The story of how I got in this position: I bought a house at 23 and house-hacked it. (free living) The deal was a $239k house, 3% down, 4.5% int rate.

At 24 I bought another house and am currently house-hacking it. The first house I rented out with property mgmt. helping me out.

The first house is now worth $265k, and with the new monthly payment now I'm -$100/mo. I feel like a recession is coming up so I kind of want to sell but then again the seller fees are making me not want to sell it so early.

Also, with the interest rates so low, I kind of want to pay down to reach 20% equity so I can re-fi.

My third option is to just keep stashing into savings and riding out the 2 houses and buy a third one. I really don't know which one is the best idea though so any help would be appreciated. Thanks in advance.