Hi All -  long time reader first time poster.I am curious as to how other small/medium size MF investors are thinking about operating their portfolios as we head into the upcoming rate cut environment (however far in the future that may be). 

It depends on your requirements. 

Given your situation and concerns, here's a breakdown of considerations and advice:Pros of Renting Out Current Home and Buying a New Primary Home:Living Condition Upgrade: Moving to a larger, newer home with boutique features can improve your living space.Rental Market: West Town in Chicago generally has a strong rental market, which could provide good rental income from your current home.Portfolio Diversification: Adding another property to your real estate portfolio can enhance diversification and potentially increase long-term wealth through property appreciation and rental income.Cons and Concerns:Interest Rate: The current interest rate of 7% on a new mortgage is high, and there's uncertainty about future rate decreases.

The difference between interest rates on a conventional loan and a DSCR loan can be significant and cut into your cash flow.

of course the answer is - it depends…. 

I I spoke with a rep about the DSCR and he is saying mid 7s maybe a bit higher for loan interest rates. 

However, rate would be prime + index + an additional +2% for the shock factor just to qualify, but you can draw the funds whenever you want vs cash out where you have to draw all the money after closing.Many borrowers would keep opening lines of credit, assuming you have the equity + income to qualify, as you keep rinsing and repeating the heloc process.

With high interest rates, there's less competition and more stable prices.

Our interest rate at the time was still very reasonable and it was something I wanted to lock in from the jump.

You can maintain a hands-on approach or enlist professional management services to streamline operations and maximize efficiency.Strategies for SuccessLocation Matters: Focus on neighborhoods with low vacancy rates, good schools, access to amenities, and proximity to employment centers.