Refinance or sell?

[Shawn Ward]

I bought my first home in February of 2021. I paid $96k and have been working on it while living in the house. I’ve recently tossed around the idea of selling. 3 different realtors have all told me it would sell for upwards of $170k due to the renovations and high house prices in the area. After all expenses/fees, I would be able to put a check for $50k to $65k in my pocket depending on what it sells for. I would then use this money to purchase a multi-family rental property. My question is, should I sell my house or have it appraised and refinance and keep this as a single family rental unit? I would not get be able to pull as much money out on the refinance (maybe $25k-$35k depending on appraisal), but I would be able to keep it as a rental property which would cash flow roughly $250/month. Any advice? 

[Theresa Harris]

One other thing to think about is taxes.  If you've live in the house, the money you've made is tax free.  If it becomes a rental, you have a limited amount of time that you can rent it for before selling to also be able to avoid paying capital gains.