Good points with Theresa above.I'll contend that the better thing overall IF you can scrape that kind of equity right now would be to take as much leverage as you can take (while numbers still make sense) on a replacement property.If you scraped $200k in equity from this sale and could use 75% leverage, then you'd replace with around an $800k home.Assuming your numbers work out to a breakeven, this should put you doubling your asset value (assuming the midwest) getting a newer construction home.I'd do that deal all day BUT check your assumptions and make sure that in today's market you can still actually scrape that much equity.

I'll have about $65,000 in equity and a cash flowing rental in place when finished with the refi. 

Here is my current situation: 26 yrs old, investing in RE for the past 5 Currently have 10 single family/multifamily propertiesI have about 40k in savings, 20k in retirement, and 60k in equity of one rental property.

Buyer has a property with $200,000 in equity and he wants to do a 1031 exchange for a $300,000 rental that the seller has.

Here in Ohio, you can still get killer deals that grow in equity while also bringing in cash flow. 

For example - an investor may look at a property and think “I have $80k in equity sitting in this home” because they take the appraised value and subtract the current mortgage balance.

In mid-2021, I did a cash-out refi on my primary mortgage which decreased my mortgage rate and allowed me to take out ~$60,000 in equity for an off-market deal that was priced 20% lower than the going market rate.

It is directly proportionate to risk.As a example low risk investors will park their cash in equity by paying down a income property mortgage.

I have around $180K in equity.

In that situation, you don't want to be in equity.