160k in equity + cash flowing rental

[Jay Dotson]

Hi there! I’m moving out of our primary residence in ATX that has about 160k in equity after realtor fees if I sold today. I decided to lease out our space to a long term tenant and will now have $700/mo cash flow from the property. I understand I’ve got a window of 3 years before I would have to pay tax on the property if sold beyond 3 years and I could also 1031 if I wanted hold for the future. Rate is 3% and location is great near domain, which is exploding over the next 10 years.

The goal is eventual financial freedom. What would you do in this situation?

- hold and continue to rent for the long haul whether LT or STR

- sell within 3 years and use equity to buy larger and higher cash flowing property

- any other solution I’m not thinking of?