Analyzing home already owned

[Valerie Kinkead]

Hi! I'm trying to decide if the home that we lived in as a personal residence and then converted to a rental is still a good investment or not. In the rental calculator do I put the current market value as the purchase price? Or do I just use the remaining balance of the loan? Or do I put the original price we paid for it? How do I decide if its better to keep renting it or to take the equity out and diversify into multiple properties with more cash flow? We have about $250k in equity, its only cash flowing about $200 after expenses, but our loan is only at 2.375%. We could take out the equity and invest in multiple other properties and have more cash flow. Also, since we lived in it as our personal residence, we only have about 1 more year that we could sell it and take the exemption to not have to pay capital gains.