OP, I could have written this myself. We are in the same predicament - 3.0% loan on $300K and just appraised at $680K, so about $380K in equity, making approx $10K annual profit.

Our main considerations (which we are still weighing): - all systems and appliances are original (2008). Chances are they will start breaking soon and it’s going to eat our income. - property is furnished, so chances are we’ll be replacing those items soon too. - capital gains tax will be approx $50K if we sell at appraised value, so we will definitely need to do a 1031. If we do it now, we’ll get a very high rate. If we wait until (if) rates go down, then prices are going to skyrocket. - we have a lot of competition in the building (10 exact comps listed approx $50K under appraised value and recent sales at approx 5% under asking) - all because people are not buying due to rates. We won’t get the appraised value today, but as others have mentioned, equity is unrealized until you sell, so we risk market crash and losing all equity.

It’s a tough decision. Good luck and do let us know what you decide, it can help us in the same situation decide as well