Upgrade primary residence (partial rented) now or wait d/t market

[Luke Stewart]

I am stuck at a what to do, looking for some unbiased opinions. I have a 3 story townhome in Denver worth $440,000 with $250,000 left on my loan (2.5%, 15year. $2300/m total payment). I am currently mid-term renting the condo while out of state for work bringing in $3000 a month ($500cf/m after utilities). I am considering upgrading to a nicer 3 story townhome in the 600-700k range. Ideally paying 3k-3.5k/m mortage on 30y @ 5.8% with the intention to refinance down the road if rates improve. I believe I could still rent it out midterm for 4k a month, basically being the same cash flow, but a much different loan. It is still my primary and I live there sporadically, will be back full time in less than a year. 

My question is does this make sense to do now or should I wait to see how the market moves. I believe that it makes sense to make the move now regardless of the market since I can cover the expenses with my income and down the road in Denver this should be a $1M property. I have worked out all the numbers I just am looking for any insight or opinions. I am new to real estate investing so trying to learn and manage risk! Love the community, thanks for your help!

[Ryan Williams]

Hey @Luke Stewart, I think this is a really cool situation to be in! Either way you look at it, I think it is a win-win scenario.  You either keep a great property that cashflows and has a ton of equity, or your upgrade it to a better property that continues to cashflow.  

I think your best choice is totally based on your goals.  If it is simply to maximize profits, holding your property and pulling cash out doing or doing a heloc and buying other properties may your best route. If you just like the idea of a better spot that will appreciate in the long run, and you get to enjoy living there, there's nothing wrong with that either!

As far as waiting for the market to move - I'm not sure exactly what you mean, but I wouldn't bank on prices going down. We have seen the market cool here in Denver over the past 2 months, but I and a lot of people smarter than me, think home prices in Denver will, at worst, go to a nationwide 30 year appreciation rate of 3-4%. 

Regardless it sounds like you are in a great spot and have options which is always a privilege! I hope it goes well for you!