Sell or Rent my home

[Alus Kunwar]

Hi guys,

I currently live in Phoenix and bought my house about 3 years ago. I bought the house for 280k, renovated the entire house for about 15 k and the house is currently worth about 340k. I am thinking of a few things:

1. Sell the house and get the money tax free without capital gains.
   
   1. Buy another house to live in with this money, use the same principle, house that needs reno then live in it for 2 years then sell again.
2. Keep the house, rent it out but get a HELOC loan and buy another house to move into.

Please advise the pros and cons of either strategy. Also, I would love to hear any other strategies that you might feel is better.