While a western WA deal might not meet some Midwest cf metric like 1%, it will be above the market cap rate or below FMV of comparibles and give you options. 

Also, I would look at rental rates to property values to determine if any areas are around the 1% rule.

Maintenance and potential repairs will also require a long-term financial plan and setting aside a contingency fund for such expenses.The steady cash flow, appreciation over time, and tax benefits can make a meaningful difference to your wealth in the long term, especially with the principal paydown on the mortgage.However, if managing the property from a distance feels too burdensome, or if you’d prefer the certainty and flexibility that comes with having less debt (especially given the high mortgage rates), selling and using the $100,000 in equity to reduce your loan for your next home may be the smarter move.

They could self manage for several years, using the rental income, until the next phase of their retirement.If they have a decent amount of financial discipline, they may want to get a HELOC now before they build to get the most favorable rate.

Those sounds like great rentals and vacancy rates have been decent - our management team only has a handful of vacanies out of the 300+ we oversee, thankful for that.

The lower rate or longer term can also make the payment more affordable. 

And, FMV on 1/6/25 is not FMV today because now you don't have a lot in an established neighborhood, you have a lot in a disaster area which comes with the challenges I listed above.We built about three dozen "fire lot" homes after our fire--all lots acquired off MLS or from owners that came to us (we didn't market for lots), and not at a price that anyone would call a "discount". 

I agree with William that the rate you have is probably better than you'd be able to get moving into another property with rates where they are today. 

Definitely something to clarify upfront...If you’re replacing with another restaurant, it should be an easier transition since the setup is already in place.Your biggest risk is vacancy $450K/year is solid, but if you ever need a new tenant,  ensuring the lease rate is sustainable is key! 

Nobody wants to be around people like this, so I’ve had to lower my rent drastically and have a high turnover rate here.