Should I keep my home? Or sell and take all the equity?

[Kelly McJunkin]

I have been reading as much as I can to make this decision, and still feeling unsure. If anyone has the time and expertise, I would greatly appreciate some advice.

We are relocating from South San Diego to Temecula this Summer (about an hour north). My original plan was to sell our 4bd/3bth home, rent something in Temecula for a while, and invest a chunk of our equity into real estate investments. Leaning towards- Multi-family and BRRRR.

*Currently owe 335k - Able to sell for around 835k. Which would give around 500k in equity to use. 

My question is-  Is it the best idea to SELL and use equity for multiple investments? Or would it be a mistake. Should we try to keep this property, rent it out, and refinance it to take equity out for investments? 

It would provide a positive monthly cash flow if we rented it out. Maybe not too much though after refinancing and grabbing equity out. (and is the market going to take a nose dive soon because of all this crazy inflation? This makes me worried to keep the home as well)

Bottom line, Is it a mistake to let go of a So Cal SFR when we only owe 335, or should I run with the cash and start my investing elsewhere....? I feel like I need some guidance at this point. And I really hope this all made sense.

TIA!