should I sell a property to pull out $500K and invest it elsewhere?

[Kolby Knickerbocker]

I have an investment property that I bought as my primary home awhile back in Bend, OR. I have $180K on the mortgage and since I bought pre-pandemic, the property has accrued a good amount of equity (I could likely sell for $700K-$750K), leaving me with about $500K in cash.

I'm considering selling the property to invest in an out of state market as the COCR isn't great (I net about $1,700/month in cash flow). My thought is that I could reinvest this money into a few other rentals in better markets to gain better cash flow.

One kicker of the equation is that I have the loan on the property at 3.1% and since 2018, inflation has been much greater than the loan interest, making me hesitant to give up such a good rate.

My goal is increasing cash flow with my investment properties so that I can turn this into a full-time gig. I'm open to suggestions and thoughts. TIA!