Liquidity. 

One of the major things a person has to consider when investing in the Caribbean is liquidity. 

Why would you want to double down on the biggest risk involved with real estate, liquidity risk?

Even if you’re making interest payments, having liquidity can be advantageous in a dynamic market.Speed and Scale: Real estate deals often require quick action.

Structured correctly, entity paperwork in line, we're sure about credit and liquidity, we have the title and insurance contacts, we have pic IDs. 

That enables you 10% nominal anual returns while it's still very liquid (fast and easy accesible cash).If you want to invest into real estate, why don't you look for seller finance or rent to own deals?

To add: you have a historically strong and consistent tourism presence, limited land/STR allowable areas, highly liquid property compared to selling a cabin in the woods, all 9 classes of visitors in the STR sector, and appreciation.  

I'm considering selling my duplex in Sacramento to liquidate some capital.

It's agnostic, so if people liquidate that I would be a buyer.Most PE funds divested from their exposure to (public) small caps to gain some liquidity(see Genius Sports and Apax Partners). 

That will allow you to keep your low rate on $170k if you have a low rate, then have a line of credit that is only the size you need and easy to pay down.This approach keeps your $170k liquid, sets up a $0 balance HELOC for the additional principal you can get and you don't pay for the additional principal loan in the HELOC until you use it, and only for what you use.