High Yielding STR w/ Tons Of Equity + Lots of Renos/Reparis - KEEP OR SELL?

[Courtney Mercier]

Hi - 
Looking for advice. I have a home that is an STR in a highly desirable tourist destination. It does VERY well with STRS and has a ton of equity as I bought it in 2015 and the value has skyrocketed. It is also very big and requires constant reno/repairs.

My tax returns are laugh worthy to conventional lenders and I have 2 other properties so my debt to income ratio looks ridiculous to the average underwriter... but the cash flow is definitely there. 

Wondering what other creative ways there might be to keep the property and buy more units to do the same with or should I be cashing out on the ton of equity I have and use those funds to buy outright and chill on the cash flow?  

This property grosses about 250k/year and has $1.8mil-ish in equity... 

Anyone care to weigh in?  It may just be a matter of what kind of lifestyle I'd like... but wondering if there are more lending options to use that equity that I don't know about/creative financing that may make it more interesting to hang on to. 

I would definitely like to purchase more STR's and/or fix/flip into STR's so it would be nice to have access to more funds

Thank You!
Courtney

[Jake Baker]

@Courtney Mercier

That is a 13-14% return on equity. If you feel you can do better, then it may be time to sell or 1031.

It depends on what you plan to do with the money. If you want to flip or do more short term projects, then a HELOC may be a good idea if you can find a lender for that and you can keep your likely low rate.