Pigeon Forge STR - Hold, Sell, or Cash-Out Refi?

[Angela Morris]

I would like some advice on whether to hold, sell or cash-out refi my first STR. I purchased it in June 2020 for $599K. It is on track to produce $160K in 12 months (almost there!). While I love the cash flow and would really like to hang onto it, I'm thinking now may be a good time to sell since the inventory is low and prices are high in the area. It's not usual for a property to get 20-25 offers. I could then use that profit to purchase 3-4 more in the same price range. Its all about scaling, right? If I sell, I would want to get at least $1.2 mil, which is double the price I paid for it. Based on the income it generates, I believe that's a reasonable price in the area, but would I have a problem with the appraisal? I haven't found any comps that generate that kind of income. It's a 3 bed/4 bath pool cabin. I've been researching recently sold properties in the area and many higher priced, larger cabins are generating less income. I've also considered doing a cash-out refi, however, since appraisals are based on comps, I don't believe it would appraise for more than $700K. Thoughts/suggestions?

I also just sold 2 long term rentals and plan to 1031 those into another cabin. I should have done that last year as now I'll be paying alot more $$$ for a lower income cabin. Ugh.