Should I Hold or Sell? Here is the quick breakdown.

[Robert Walmsley]

I bought a SFH in 2011 in the Sacramento (Antelope) area rehabbed it and have it rented. I owe $162K and can sell for $350K and still exempt myself from the gains. The PITI is $1,004 with a 30 year @ 3.62%, it is currently rented for $1,495 (A bit under market but have excellent tenants). It was built in 1998 and has been rehabbed so I do not anticipate any major repairs, I have a home warranty in case the HVAC goes.

I am a real estate broker and plan on expanding my rental portfolio over the next 10 years and in my opinion this is an excellent rental to have in the portfolio. However, I am considering selling along with my now wife's house to put +$250K down on a primary residence. Now is the time to sell so we can both exempt our gains and get setup in a "dreamish"  house with a low mortgage payment and rate. But it has been such a good rental so far and it is my escape plan if things ever go bad because we can afford a $1000 mortgage no problem. 

So should I sell to have a large down for a new primary? Or just sell the wife's house (Net $60,000) and put the $60K along with saved money for a modest new primary? Thanks for advice in advance!