Using stabilized property algorithm to set value ignores the primary source of return.  

Denver is difficult as the City and County of Denver has limited STR to properties which are your primary residence.

I suggest you look into extracting equity from your primary rather then sell the Merced property.  

Hey your messege is a bit confusing -  seeYou can avoid capital gains tax when you sell your primary residence by buying another house and using the 121 home sale exclusion.

Excuse me but I’m ignorant- could we buy another primary home with primary interest rates while renting out the original?

I'd seen and been part of several conversations regarding single-color-paint-schemes, and I liked the look and idea of doing it, but after talking with my brother-in-law who owns a successful painting business, and my father, who owned a successful painting business, I decided to abandon the single color scheme.The primary reason behind our choice was what you mentioned.

As other's noted, the primary ways to gain more money are:Bring in partners for the equityTake on more debt, either through HELOCs, refi's, hard money or private lendersMake more money yourself.The most common way people scale is through the first two.  

There is variance in markets but I believe most high price markets are like my market with 2 primary plays 1) patience.

Decide whether your primary focus is cash flow, equity appreciation, or a combination of both.

@Sonja Montielh so, you're moving into a new primary and renting out your previous home, which happens to be a condo?