How to proceed after the sale of your first property

[Kyle Martinez]

Hello all, new BP user! Just looking to be sure that I am taking a step in the right direction here. I live in WA and was lucky to utilize the State's down-payment assistance program and purchase my first home in 2017 with ZERO down. I received an offer on my home today, and am keen to accept. The offer was 67K above my current loan value (we refinanced in September of 2019; received a 3.125% interest rate), and I am going to be walking away with close to 40K if all goes well with inspections and such. Interest rates right now are low and we should be able to receive a 3.25 or so, should we purchase another home. My wife and I put in an offer on a home today that is in excellent condition, was recently renovated. Anyways, I don't mean to bore you with semantics. I just want to be sure my next step will be in line with my future goal of purchasing another home in 2 years time, when capital gains are not taxed and the home's value increases. I will be putting ~20K down on the new purchase if it is accepted, and the plan is to Re-fi in 2 years time and (hopefully) have the equity to pull some and purchase another. Does this plan seem sound to someone with experience in this field? Should I make this move, purchase a newer, nice property, with this kind of plan? Appreciate any and all feedback. Let me know if I am headed the wrong direction; I am good with critical feedback. Thanks!