Just make sure you’re comfortable with the interest rate if going either route.  

My in-laws loaned us the total purchase price minus $5,000 on a 3% interest rate.

What interest rate are you getting?

I don't do this for a living and have no real world experience, but at 40% down, even with a 7% int rate, that seems like a high monthly payment.

However, value add with a sale is not as implacted by rates.  

Rent, Expenses, NOI, Cash Flow, COCR, Cap Rate, Market cap rate. 

@Tom Rairdon If you’ve owned your short-term rental (STR) for over a year, it likely qualifies for long-term capital gains (LTCG) treatment, taxed at lower rates (0%-20%) compared to your 33% ordinary income bracket.

But higher tax rate in PG county. 

Cash out refi gives you a new fixed rate loan for 30 year term.Best,Jamael RomansUnited Mortgage Corp Thank you so much for your advice!

Major cities where STRs have only began rising up and gaining public spotlight with the rise of AirBNB are more likely to have more shifting and less stable regulatory environments since those areas are still in the process of trying to find the balance for STRs within their markets.