Now the issue of attaining liquid cash.

Is the IRS/your CPA cool with the idea?

Retaining your current home at a 2.875% mortgage rate maximizes cash flow, while accessing $65K in equity provides liquidity for your next steps.

What do people do when they run out of funds (liquidated credit cards and family members assistance)?  

Now investors, especially the newbies, are chasing returns by going after higher risk investments - many NOT really understanding the true risks.Many more investors will be losing money and choosing to liquidate real estate - which will be buying opportunities for the better prepared investors.

Because I still have that equity and if I were to liquidate it I would be better off.

Heck, some people might even pay more for the 'cool factor' of living in a 'small home'....I'd give it a go since you're a veteran of this RE stuff.

@Jonathan Baptiste cool story glad you learned a lot.Now, multiply all that by 300+ tenants and you'll know what the average PMC has to deal with!

It hasn't been an easy ride for lots of folks building in Cape Coral over the past several years, but one silver lining is the property values have nearly doubled since Covid, though the market has cooled recently. 

This is where keeping a cool head and using good negotiation skills will likely yield the best outcome.Good luck.