Should I sell my primary residence at $500k profit?

[Travis Boyd]

Hi all. I bought our primary 4 bedroom residence in 2020 for $930k and it has increased in value to $1.43m (woo hoo!). Now that the value has increased $500k, any additional increase will be taxable income when I do sell. I am planning to begin investing in multifamily rental properties in 2025, so I'm considering if I should take out an equity line of credit to finance my first investment (my current plan), or sell my home given the $500k value increase and do a house hacking  multifamily residence to jump start building wealth through real estate investment. We love our home which has a $2,400/month mortgage and we rent the furnished MIL downstairs for $1,600/month, so I plan to do the equity line of credit and continue living in this home. How much thought should I put into the selling my home to avoid the future taxes from growth compared to staying in my home another 20-30 years?

[Travis Boyd]

Thanks for your thoughts. I'm paying $2,400/month and getting back $1,600, so only paying $800/month. The wife and kids would prefer to stay. :) I'll likely do the HELOC and not worry about the extra taxes on gains over $500k when I finally do sell someday.