Sell or rent out primary due to move

[Morgan Alema]

Debating on what to do with my current primary home as a job is taking us out of state. I currently own a home in Seattle (Queen Anne) that has appreciated roughly $1M since we purchased it nearly 9-years-ago. After taxes and selling costs we should net roughly $700-850k depending on final sale amount. We could take that equity and purchase a more expensive home in an equally desirable neighborhood in our new city and push the leverage. Possibly even purchase something that needs some renovations - new kitchen, baths, flooring. 

However, with our current low interest rate and rental rates for our neighborhood we could also cash flow appropriately $1000 per month, keep it and allow for further appreciation over the next three years until we would need to sell to capture section 121 tax exclusion. My current home is in excellent condition and will sell rent very quickly. However, as we approach an election year I’m wondering if the time has come to say goodbye and move these funds on to another home. If rates were lower then I would do a cash out refi for the next purchase. 

Another scenario is that we buy something in the new city at a much lower price point and use other funds. 

[Melanie P.]

This is a great story for poeple on the coasts thinking of investing in Detroit or Ohio -- a million reasons to invest closer to home. Viewed another way the house generated $9,400 per month in appreciation over the last 9 years. 

I am not convinced the next few years will show great amounts of appreciation to make it worth tying up that much capital to earn $1,000 per month in cash flow. You know your market. If there is additional appreciation it will make the hold worth the effort. 

Adjusting to a new city is hard enough without changing your standard of living. Would you be bothered if friends/family visited and saw a different type of living situation? If you want similar neighbors, conveniences, etc. plus the prestige of living in a tony neighborhood sell and continue living as you are accustomed.