Should I sell converted primary to rental after 1yr?

[John Sheil]

So I have been on this site and missed out on a several opportunities.  

I am in Denver, CO.  In 2008, I bought my house for $188k. In 2014, cashout refi For $300k. In 2018, we moved to new house and rented out old house at great price.  Tenants now need to move out.  I made a mistake doing month to month after their year lease.  

We can sell the rental for at least $430k and net at least $120k. Wife is a realtor so no seller agent fees. However we are bushing up on $250k limit for 2/5 primary residence.  

If we continue to rent it is about $700 net per month down from tenants who are leaving and I am expecting 1 month vacancy. 

Whether we sell or continue to rent, we would like to pull out the equity.  I am from midwest and my family is still there, so we are think of buying more rentals either there or in CO Springs.  Maybe do a flip if price is right.  With wife being CO realtor, she has a high investor as client, and a few contractors, so we can make some moves locally.   

I would like to turn the equity into at least $2000 net per month/20k per year.  Is that a reach? Being from midwest, I know I can grab a few houses under $150k. However, I rather invest in areas with possibility of real appreciation.  So I am thinking of splitting it, at least one in midwest and one in area I think will appreciate within 5 years or flip in CO. 

As an attorney, I also looked at some of the note threads and will look at wholesaling too; however I don’t have too much time to do the legwork on these areas.  

Our current house also has a 100k equity (not including dp of 20%) which we need to remodel (about $100k).  So I don’t to stretch ourselves to thin. I would like to out equity or sell rental, buy more rental property, and then next year take equity from our current house to remodel.