Could house hacking in an area you're currently living in be a better option?

We're considering our options for moving forward.Numbers:Purchased for ~ $230,000 (2.5% interest)Remaining balance ~ $220,000Appreciated to ~ $400,000Cash flow is ~ $500 a month after setting aside for all reservesOptions we're considering:1- Cash out refinance- at current market rates, rough estimate is that we could access close to $100,000 in equity, but our cash flow would go to $0 or possibly negative for a period.2- Sell now - if we sell before the end of the summer, we could still qualify for living in the property for 2 out of the last 5 years for the additional tax benefits.

I guess the other option is to use a property mgmt company to find a tenant for you, but I just thought it would be interesting if there's a site where the landlord can peruse a list of quality tenants and reach out to them directly! 

If I could find a multifamily to househack that may be a better option for 5%.

People live there because they have no other options.

While I understand the standard expectations of lenders / investors, trying to search for the non-standard options, that would work for both sides.

Her math is off but it's a valid option.

Sometime saw investors add clauses that were like put options, but in the real estate market.

I have a rental home in Centennial, Co (couldn't find Centennial on the Colorado city options). 

But our timeframe is a year from now, so we're still figuring everything out.I work in film/tv post-production and while I may be able to do the work from home thing with that job (at least to some degree), I will need to replace much of my income with this new business.Thanks again- I'm sure I will have more questions as I do some more exploring....