Primary Residence with $150K+ in Equity - Sell, Refi?

[Megan Broom]

Hi BP!

I live in Atlanta, GA and purchased a 1 bedroom condo in Dec 2016 for $328,000 with 20% down and spent somewhere around $30k in renovations. I did not have to pay closing costs since I used commission towards it. I am a licensed agent and work in new construction so I was able to get discounted pricing on the renovations - I would estimate it would have been a $40k-$50k project for the average homeowner.

This is a luxury high rise building built in 2008 in Buckhead that has very few 1 bedrooms. The 2 bedrooms have been selling from the high $400’s to low $600’s and the 3 bedrooms from the high $700’s to $2 million.

Shortly after I purchased, the prices for the 1 bedrooms jumped up from selling in the low $300’s to the high $300’s for units that had either not been renovated at all or very minor updates. A corner unit slightly smaller than mine that was not renovated closed for $405,000 in March 2019 and there is a pending 1 bedroom slightly larger (has a small study and larger bathroom) at $439,000 which will be closing 7/31 so I will be able to see the sale price soon.

When I purchased, my mortgage was around $1,650 and the HOA fee was $515/month including cable/internet. My mortgage went up last year due to taxes to a little over $2,000/month and the HOA fee increased to $600/month around the same time so now I am paying over $2,600/monthly from about $2,165 previously.

I owe right around $250,000 on the mortgage with a 4.25% interest rate. I believe I could easily sell it between $400,000-$425,000 with the view and renovations. I have just reached out to get information on a Refi since rates are lower and my credit score is higher than when I purchased.

The 1 bedrooms have been renting for $2,200 to $2,600. I have been on the list for a leasing permit for a while now just incase I ever wanted to rent it out in the future. Since I have been on the list, it has barely moved and there are many other owners ahead of me so I doubt I would be able to lease it anytime soon.

I currently have no need or desire to move but with all the talk about the market being at the peak, I am very conflicted if I should try to sell it for as high as I can and easily walk away with $150k or do a refi to get a lower interest rate and pull out what I can in equity. I would hate to see the cycle turn in the next couple years and have trouble making back what I originally paid + renovations when I have the chance to make at least $40k more than I put into it with renovations. I am happy living there now but would not want to be upside down and stuck for several years if/when the market cycles.

I would put this money in savings to use for real estate investments as I come across them. I could move into a studio or 1 bedroom apartment between $1,300-$1,600 which would be $1k or more less per month than my current mortgage/HOA/taxes. The prices are really high in the desirable areas in Atlanta where I would want to live so I don't think it would be a good idea to jump into purchasing another primary residence right away.

Sorry this is so long but I wanted to give all the details in hopes to receive some feedback that will help me make a decision!