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!

[Brandon Carlson]

@Aaron Cheng Depending on what part of CA you're in demand is usually high. Supply is low in SoCal for entry-level homes. With rates at an all-time low, Millenials are putting in offers more now than ever, at least in my market. 

The price point at which your home is valued may have it sit on the market a little bit longer. I would do what you said and take your profits and move on to the next home.