Path to take next? Unlock equity or continue with appreciation

[David Santos]

Hi BP Community,

I have actively followed many post and the advice on here is invaluable. Now, I am in a unique situation where I haven't been able to find answers online.

The situation:

I purchased a duplex to house-hack in Oakland, CA with an FHA Loan for $710,000 which is now my primary home. I renovated the property, raised rents in one unit and refinanced into a conventional loan at 3.5%. Now, SFH on my block are selling for $800K-$900K with less than a month on the market and realtors believe they can sell my home for $1M - $1.1M. This would leave me with $120K-$180K after taxes,closing cost etc. I also am wary on prices staying so high in the Bay Area. I feel as though the eviction moratorium is going to cause over-leveraged landlords to liquidate some of their RE (Please provide your thoughts on this).

I originally house-hacked because I wanted to jump into real estate investing, lower my housing cost (Net "mortgage" payment is $1,193 which is extremely low for the Bay Area), and have low-risk experience with renovations as it would be my own home. Now, I feel as though I am "stuck" on my real estate journey because there is no way for me to unlock the equity in my property. I tried cash-out refinance but lenders charged me 2pts for 25k (fannie mae limit is 75% LTV for duplex) and don't qualify for a HELOC given the stricter requirements by most lenders.

I am asking for the BP Community to provide insights as to what they would do in my situation. I feel as though I have 2 options right now:

A) Stay in the property and wait 2 years to build reserves to invest (Bay Area real estate appreciates ~4% to 5% per year). Currently have $15K in savings.

B) Sell my duplex and and use the cash to invest Out of State (I am thinking of Austin/Central Texas Area or ATL Area)

My financial goals are for my Real Estate income to be at least $10K a month by the time I am 40. Currently am 24, so I have a long way to go.

Let me know your thoughts on what you choose and why or any alternatives!

Thanks,

David