Should I sell or rent?

[Aaron Cheng]

I bought the house 5 years ago for 800K in CA with 350k downpay and then rented it out 2 years ago. I have about 1% coc return. The house is now worth about 1M. Recently I am concerned about the economy and thinking about selling the house so I don’t need to pay tax since it is still considered as my primary residence. I don’t know if it’s the right decision since I have noticed the price is dropping in the neighborhood. Would love to get your thoughts. Thank you!