Granted new construction probably won't appreciate as much and you'll pay a slight premium for the property.  

But really you’re just creating a second job for yourself and one that doesn’t pay very well if it even is cash flow positive at all 😆I used to buy houses for STR but now that I’ve got several STRs up and running that I bought many years ago, I stopped buying STR once mortgage rates went up and housing prices went up.

While I have not done a deal with them, their agreement requires a close timing that simply will not work with conventional lenders (usually 7 days or so).  

Is it better to sell, pay off mortgage and capital gains and take the cash to invest in another property or is it better to refi/ETO and take the cash to invest in another property?

We pay $850 for a WH install, so, that seems high but you are in CA.

Homebuyers will always pay more than a REIT type investor.  

If it's in the restricted zone (within 31 miles of the coast or 62 miles from an international border, you have the choice between using a bank trust and paying the fees mentioned above or using a Mexican corporation and bearing the costs of establishing and maintaining  the corporation.

If you pay more, you won't meet your metrics and will probably have negative cashflow and/or equity.You may have to make 10, 20 or even 100 offers to get one accepted at the price that meets your numbers.This is what all investors did BEFORE the Great Real Estate Crash of 2008-2010.

As long  the tenants pay the rent each month, increasing their rent will be very tough and getting them to leave will be extremely tough. 

And hopefully I can be financially independent by paying the mortgage down eventually.