Advice on next Real Estate purchase

[Ryan Rogers]

Hello BP,

I bought my 1st home in August 2017 FHA 3.5% down. Initially just to buy a home and not to invest. However, I have been on bigger pockets and have became really interested in Real Estate investing. I lived in the home for two years and this is now my 1st rental and I am not cash flowing this property. I currently receive about $108 cash after all PITI. Not including vacancy, repairs, ETC. My goal is to get into multi family and potentially buy a 4 plex. I currently have about 65-70k of equity in home. Leverage makes me nervous, and it doesn't make much sense to REFI to get all PMI off because my market rent is about as high as it can go, maybe another $50-100 according to rent o meter/zillow/craigslist. So I am thinking I should just sell the home, take the cash, and throw it onto my next multi family this summer.

Currently, I am house hacking my home in Tacoma, WA. I have 3 roommates, and I don't quite live for free, I pay $279 a month after all PITI. But who can say they live for $279 right? This home I am confident will cash flow as I ran the numbers many times once I move out.

After living in this home a year (Nov) since I bought it as a primary residence 5% down. I would like to move into a multi family from the 1st rentals equity. Is this smart? The tenants are great and are on a month to month lease. I can maybe raise the rent another $100 to continue loan pay down and a bit more cushion for expenses/vacancy. Should I wait another year in the Tacoma property to avoid all capital gains taxes in case I ever sell the Tacoma place?  I guess I would just like some advice on what to do with my 1st property that is just sitting in equity and not being used when my goal is to get into multi family and scale higher with more doors.

Thanks for all your advice.

Ryan