Cash-out Refi or Sell?

[Daniel Han]

Hello BP community.  I've been mulling over whether to do a cash-out Refi or to sell my rental property.

Currently residing in Northern VA, rental property is in West Texas (El Paso). Rental property was my primary residence until I relocated to NoVA last year. I'd like to have some cash readily available to eventually buy a primary residence (using the VA loan) in NoVA that I can house hack, or invest in 1-2 rental properties out of state in an area more favorable for cash flow, appreciation (midwest, or south). Property taxes in El Paso are really high (~2.8-3%) and with home values going up, this would result in higher taxes eating into my monthly mortgage/cash flow. Part of me also wonders if the home value will continue to remain as high, or drop in a few years (4-7) when I originally plan to sell.

Property value: ~280k; currently have ~100k in equity.

Current mortgage: 173k remaining on a 30yr fixed @ 2.75% (VA loan); 1360/mo (PITI)

Rent: 1800 (looking to increase rent when current lease expires); comps in area are 1950-2300

Monthly expenses: 250

Original down pmt and cash put into the property: 28k

If I refi, I'd refi to 200k (70% of property value), for a 30yr fixed @ 4.6%. This would put my new mortgage at ~1660/mo (PITI) and provide a cash out of ~23k.

Selling the rental property would reinstate my full VA entitlement (970k) to use here in NoVA for my next primary residence; if I went with a cash-out refi, remaining VA entitlement to use would be ~790k.

Should I sell now while prices are high, or do a cash-out refi and sell later (4-7 yrs)? Or just keep the rental with the low rate?

Thanks!