As prices increase, fewer people can afford to buy homes, forcing them to rent.

Do this quickly because some counties have a time limit on when you can appeal.I recommend you research the market for:- Comparable Property Sales- Condition of your property, including anything that may affect your property's value- If you are really serious, an expert appraisal may be worth the effort.

Would the value of the remodel increase the rents or the selling price that would out weight the cost? 

How much cash flow makes it worth it, in your opinion?

It hedges any downside risk and increases cash flow.

Let’s talk about what’s holding you back and how letting go can increase your bottom line

Dallas-Fort Worth offers growth and opportunity, but smaller markets like Sioux Falls or Des Moines provide stability.

The equity is actually what you are paying for the property.In this case let's look at the numbers that count,...the current numbers.You have about $500k or more in equity, which is buying you a property that's worth about $700k (I went with the lower PV. 

I think you’re under a misconception that’s leading you to think you have options you don’t…You say it’s worth $1.1M and you’d net $500k.

A simple explanation might be that rents have increased to offset higher mortgage costs, but what about property owners who locked in rates below 4%—or even 3%?