Strategies for Mom's House

[Matt Cruz]

Hi all, 

I'm looking for some advice on behalf of my Mom as she's in a favorable situation with our current home but is not exactly sure how to get the most value.

The house was bought in 2013 for $258k in Freehold, NJ. There is about $157k left on the mortgage and our realtor gives the house an estimated value of $475k (that's what he says we should list at so using that as a rough estimate). She also has a 3% interest rate on the mortgage which is obviously much better than what she'd get now. 

The current plan is to sell the house and use the equity as a downpayment on a condo. I'm wondering what other strategies come to mind? Given how low her interest rate is, I was trying to see if it makes sense to rent out the house while renting a place to stay. But, I also am aware rent prices are fairly high right now. 

Thanks in advance!

-Matt