Does that mean it's on a roll and will go a lot higher or is it likely to do what it always does and correct?

Also be aware that cash out refinances typically have slightly higher rates than initial purchases or just rate and term refinances.

@Jeff Shaver You can leverage your $550K equity by selling your San Diego property through a 1031 exchange to invest in a higher-cash-flow asset, like a multifamily complex, while deferring capital gains taxes.

If the insurance is higher, like in a flood zone, or hurricane zone the net will be lower. 

Perhaps your rents are just higher, but I wouldn’t suggest getting into a negatively cash flowing property especially for your first one.

However, vacancy means covering 100% of the expenses.Multifamily properties almost always generate higher cash flow due to multiple income streams, which also reduces the risk of vacancies.

Contrary to popular belief, this is not set because I believe it will give me a higher return.

You'll have depreciation shielding your passive income, so that's a 35% savings on your marginal income. however if you flip you'll be subject to higher tax rate - so you'll have to figure out what strategy works best for you.

We have not disabled ours or converted to gas, but Tenant must sign a Fireplace Addendum stating if they use it, we require a higher renter's liability policy with us as additional insured, rules on wood, storage, use, safety, they pay for yearly professional cleaning each year they are there, etc.  

This could involve offering a higher interest rate in exchange for reduced upfront costs or deferring payments until a certain milestone.If building right away isn’t feasible, consider buying the lot now with the goal of paying it off over time, and save up to build when rates and budgets align.