Relocation / selling vs investment?

[Jon D.]

Hello everyone! I'm new to this website and excited to learn from all of you!

We currently live in Houston, TX but we will be relocating to the Seattle/Bellevue area this summer for work. I own my primary residence in the Houston area (~$700k - 5 bedrooms, 4 and 1/2 baths, 3,500 sq. ft.) and a small rental property (1,500 sq. ft., $1,900/month). I don’t have a mortgage at the moment in the US. My family consists of my wife and three kids, and I’m currently the sole earner. Property taxes on my primary residence are quite high ($17k/year).

With the upcoming move, I’m considering a few options:

1. 1. Sell our house (~$700k) and purchase a new one in the Seattle area. However, prices for a comparable 5-bedroom home in Washington are significantly higher, likely around $1.5M or more, which would mean taking on a new 30-year mortgage with 6+% interest rate and limiting new investment opportunities.
2. 2. Sell our house (~$700k) and invest in 2–3 smaller rental properties in the Houston area, a market we’re familiar with. We can probably find small rentals for $250-300k each. Possibly using mortgage/home equity loan on one unit we own to buy an extra one.
3. 3. Rent out our current house (likely $5k/month) and use a home equity loan on the primary residence or similar financing to purchase a home in Seattle.
4. 4. Rent out our current house (likely $5k/month) and rent a home in Seattle (around $5k/month).

Right now, I’m leaning towards option 2, but I’d love to hear your thoughts or suggestions! My goal would be to build an investment net with passive income, de-risking the fact that I am the only earner.