Rent or Sell Current Primary

[Jacob Schurer]

Hi all,

My wife & I sold our duplex in 2020 and used ~ $60k of that as a down payment on a town home for our growing family (purchased for $345k, 30yr @ 3.5% in 2022).  With 2 kids and a third in the near future, we're looking to move again in the next 2-3 years.

We have around $15k savings, $45k traditional IRA and $20k in other investments. We also have access to a $30k HELOC, fixed 8.5%.

The current mortgage is $1600 and exact units in our block are renting for $2600+/mo, but the property doesn't pass the 1% rule.

We want to start investing in RE again.  I know there are other financing options, but the question we cannot seem to avoid is whether or not to hold (and rent) or sell the town home.

It's tempting to leverage the current equity, move out and rent it - but from what I've read / calculated, it might not be the best return compared to other options.

Ideas on how we can get into another home (larger but cheaper) while also (re)starting our REI journey?

Thanks,