Sell rental or HELOC (old primary residence)

[Randy A Crowe]

I currently have my old primary residence rented out of the last year. Lease is ending and the renters are moving out. I cant decide if I should sell now and avoid cap gains or HELOC it and rent it out again. Its in a highly sought after area, could sell it for 239k and the mortgage is 123k. My plan was to always keep it and leverage it to buy another rental, but with the prices high its hard to pass up the tax free equity while I can get it. Not sure what the best move would be. Mortgage payment is 720 and rent is 1400. Its a small house so the rent cant really increase much more.