To keep or sell Capital Gains

[A B]

Hey everybody,

So we have a couple rental properties and one of them is our old primary residence. I fully understand the 2 of the last 5 year rule for cap gains and that is why I'm looking for some opinions on what to do as we have rented it the last two years after moving out and I have 1 year to sell it if that is the thing to do so I can avoid cap gains.

Here are some details

Bought for 130,000

Current value is 250,000

Depreciate $3500 a year

Rental profit 5,500 a year

Appreciation is well over 4%

I live in Portland and the market is very, very strong.

My conservative calculations say it will be 3.5 years before we would walk with as much cash as we could walk with if we sell in the next year.

If I sold it today I would not buy another house with the money. We don't need the money so it would be invested in our other rentals, the market or paying down our current home.

What do most people do in this situation, do they sell and cash out or go long term? What would you do and why?

Thanks