Should I sell? Vegas

[Oliver Martin]

Bought the house in 2012. Remaining balance is 250k on a 3.25% FHA loan, eligible for pmi cancellation in 2 years . Mortgage is $1670/mo including pmi. In two years, mortgage may lower to around $1300 after pmi cancellation and some equity. Potential rent is $1900-2000. Market value is 390k. Tax exempt if I sell now or in the next couple years. This house is in a desirable neighborhood in Vegas and previously sold in 2006 for $700k. Should I sell now and use the equity to add another smaller rental property? Or rent out and see where the market goes? If I sell, it will also improve my DTI ratio and increase my borrowing capacity. If I rent it out, there could still be room for equity in the Las Vegas market, although it could be argued that it is speculating. What would you do if you were in my shoes? Thanks in advance.

[Oliver Martin]

Brent Coombs Charlie Fitzgerald Phillip Dwyer thank you all for your replies I am in the process of getting a pre-qual for a larger home as a primary. And once I close that next property then I might test the market on this one. Although heloc is also an option because yes, I would like to keep that 3.25% interest should I decide to keep this property long term. My strategy is fairly conservative and I do not want to over leverage since I know many investors who lost it all in the recent market crash. I am trying to have a mix of free and clear properties, and some with mortgage that I would either sell or pay off someday. For now I am in the accumulation stage but I'm being very careful with my next steps especially in this market. And it's nice to have found BP where I can talk with and seek advice from like minded individuals. :)