Starter home Question- Rent or Sell

[Stephen Marcil]

Hello. Recommendations would be appreciated. 

Question: Should I sell my current home and use the capital gains to purchase higher cash-flowing properties or use it as a buy and hold?

Background:

5 years ago my wife and I bought our starter home. 3 bed./2,5 bath w in-law apartment, 2200 squ/ft in New England. We are looking to move to a larger home in the next 1-2 years. Since closing on our current residence we have basically updated everything (outside: deck, roof, paint, inside: paint, bathrooms, appliances, flooring, etc). We currently owe $230k and recently had our home appraised for $400k. My wife and I are full time therapist's in our early 30s. I run a mobile home-buy/sell for payments business on the side so I am familiar with purchase/closing docs and have a rehab team that is strong and dependable. I would like to begin branching out into multi/single family homes this year for buy and hold cashflow model. I am indecisive on what may be best since our current home has just had a complete remodel so it should hold up well for a while before significant rehab costs are needed, however, I may be able to use the equity in the home for higher ROI properties. 

Thanks

Steve

Steve