There are a bunch of different figures associated with this decision, such as new interest rate, old interest rate, cash flow of new property etc, but I'm having a hard time getting my mind around how to analyze the decision mathematically.  

I would, If in this position, take the equity in the form of a HELOC and purchase a cash flowing asset that would not only pay for itself but pay for the cost of the money while putting cash into my bank account each month. 

STRs still work in the right locations with the right model, but the days of just throwing a place on Airbnb and cashing checks are over.Curious how you’re navigating market saturation and rate compression.

Quote from @Aishan Gonaduwage: I am seeing good deals in Detroit that could cash flow in the current market.

I just don't think you can expect a property to cash flow when you're putting 3.5% down.

Such a situation is recoverable if there is enough time for a market recovery and the cash flow is at least break-even (or there is enough reserve cash to cover negative cash flow until it can turn positive). 

I have done a handful of flips using cash, partnering with friends, and making it work. 

@Vincent WeselakIt’s a good idea to get an estimate for your insurance costs upfront since this can vary based on the property type and location, and it’s a key factor in evaluating your cash flow. 

Condo's usually have high HOA dues which will eat into your cash flow.

Socal is tough to find investment properties that work.I have a great realtor in Sacramento that can find properties that cash flow.