Great Home, High Equity, Low Rate - Sell, Refi, Do Nothing???

[Tyler Y.]

Hey everybody,

I'm in a great position, but I'm stuck. It's a great problem to have, except, this has totally screwed up my plans.

Rates have moved up (as we all expected) but now I'm really clinging to the 2.75% 30 year mortgage I got on my live-in flip I purchased at the end of 2020.

I bought this house from a distressed seller using the 70% rule, paid 210,000 for it and it's currently appraised close to 400,000. I'm only 26 years old.

My plan was to fix it up (that part is done) and sell it for a big gain (I only put a small amount down and have put a large chunk of savings from working and living with my parents into renovations) but now the rate looks soooo good and I think this could be a future rental. How can I sell a house I got for such an amazing deal, with a historically low rate, that I've only owned for 1 year? That seems like a rookie mistake.

It's also a very nice home, a place I could see myself living for a long time. This type of deal could be pretty rare. I could keep searching while I stay put (I can find more deals like this, as I am very patient, that's how I got this one) but all this equity seems like a waste - maybe I should cash out refinance it and use the 100k or so to pay cash for a small rental nearby (I own 1 rental property that I paid 120k for that cash flows about 600 per month).

Sorry for rambling. Any thoughts from the professionals??

Tyler