Sell or Hold? Options for equity

[Erik Kraemer]

I currently own and rent the top floor unit (specs below) of a 3 unit building in South Boston.  This market has exploded over the last 10 yrs with little signs of slowing down. This property is on the corner of East 2nd and O st, a block to the beach, 1 mile to Seaport, on several bus routes, with several high impact projects w/in walking distance.

While the property currently nets about $300/ month, my wife and I want to tap into the equity for primary residence improvements and potentially cash out entirely to build a more diverse, cash flowing portfolio.  

Our inclination is to sell, cash out (avoiding taxes for holding outside use as primary residence), reinvest cash in next investment (potential BRRRR ops) and build from here. The main question is- Do we sell or are there other options to access equity we should consider?

Specs:

Condo- top floor, 2 bed, 1 bath, exclusive back deck and roof deck, laundry in unit, modest updates

Purchased- Oct 2014 for $415K (5% down)

Current valuation- $625-650K

Mortgage- principal $370K ( conventional 30yr,  4% fixed)

HELOC (for primary residence purchase)- $23,000

Additional investments- $27,000 

Rent (beg Aug 2017)- $3000 /month

Net (condo fee, taxes, ins, HELOC)- $300/month

Thank you in advance for your help!

Erik