Sell Primary residence and invest

[Fenilkumar Patel]

Just quick numbers. 

Location: Georgetown, TX

Primary Single family home (First home) purchased at 280K with 2.5% rate

Current Value = $450K , Equity = $200K

The area still seems to be growing and doesn't look like will slow down for a couple of good years. 

I am thinking about taking cash out of my current primary home and buying a little bigger house for ourselves and then renting the current home.

Does this seem like a reasonable idea? What would be the best way to use the equity? 

Sorry never invested in real estate besides my primary. I am kind of a newbie.