Sell, Rent or Refinance!? What would you do?

[Bryce Penner]

What would you do... The house is located in an excellent neighborhood, huge development recently took place across the road. We had purchased one street away right before the project began. Currently about 3/4 of the way built out. Purchased the home in 2015 for $508,000, currently valued at $850,000. We do live in this house so the proceeds of the sale will be tax free. We now have a remaining $450,000 remaining on the loan. So, if we were to sell we could walk away with roughly $400,000. If we were to rent the house and refinance... Currently we rent the basement suite out for $1000. If were were to rent the top out we could have a combined 3500-3600/month rent. Our monthly mortgage payment with property taxes is $2400. So if we were to move out our monthly cash flow before expenses/ insurance would be a total of 1100-1200/month. With doing this, down the road we will need to pay a capital gain if we ever sell. Our equity is sitting at around $400,000 and would be able to pull out a significant amount to invest in another property.... By refinancing we would be paying more than we originally qualified for (2.69) interest as rates have increased probably close to 3-3.25%. Your input is appreciated Bryce