Sell & Avoid Capital Gains or continue the cashflow?

[Adrian Veideman]

My wife and I purchased a new home and converted our old one into a rental.  The capital gains exemption is up next year and I just wanted to see what kind of guidance you awesome investors could give me.  The property has 275k worth of equity in it and the mortgage is at 3.625%, we are currently renting it for $2850 a month and cashflow $1100 of that.  Would you sell it and roll it into a multi unit?  Keep it and just let it chug along with the current cashflow?  Thank you all for your guidance!