I'm trying to determine if it would be better to sell and collect this equity on one of my properties or keep it and continue reaping the nice cash flow it produces. 

The best strategies for any type of cash flow are coliving/rent by the room (would recommend Homeroom for a passive hands off turnkey type investment that still will produce income), multi-family 2-4 units where a rehab/value add is needed, or buying a property with an ADU/Guest house and treating each unit separate unit. 

Im an investor here in dayton and a top producing realtor with some good off market multifamily properties.

.), and investing portion (I only need a portion) in high income producing equities and some private lending.  

I d9nt know the market conditions of the subject area but my educated guess would be that it does not produce high levels of appreciation like So Cal would so I don’t think that is a play for this deal.

He will do so and he isn't doing anything illegal.He is having a company produce the mailers and he has no control over the image used.

If it appreciates  10%, the return from appreciation is 12.5% (25% of the return of the higher LTV).  20% appreciation would produce a 25% return (25% of the higher LTV) $1945/month crease to the cash flow

however, coastal California buy n hold residential RE has produced great return for over 50 years. 

As for pros/cons of keeping it:Cons: 1) Poor cash flow to value, 2) Managing from afar has extra difficulties/risk, 3) No cap gains if you sell nowPros: APPRECIATION: San Diego historically has produced outstanding return for long term buy and hold.  

They are all rehabbed and solid producers.