Sell or refi? 50% of net worth ($500K) locked up in one property.

[Michael John]

Sell or cashout refi? 
This property cashflows about $1800/month after all expenses including P&I. But $21,600 is a 4.32% return on all that equity ($500K+). Plus half of my net worth is in that one property. I’m eligible for the 121 exclusion shielding me from about $50K  in capital gains tax. I could 1031 exchange the other half of the sale into another 2 family, though I’m looking at around $1200/mo cashflow at best. Or I could cashout refi $200K which would increase payments about $500/mo plus closing costs.

My goal is to buy a primary residence.

Thanks in advance!