Should I sell or rent it out?

[Tyler Stamets]

I have a 3bed 2 bath house in Anaheim near Disneyland.  I have been living in it since 2012, when I bought it and have done a lot of work on the place in that time.  I also currently rent out one room on Air Bnb and have been nearly paying the mortgage with that income each month.  However, I am now considering relocating to San Diego area to take care of a parent and I am trying to figure out if I should keep my Anaheim house and turn it into a long term rental (as short term rentals are being phased out by the city) or, since the value has increased 200k since I purchased, should I sell and look at other investment opportunities?  Looking for guidance on what questions to ask as I make the decision.  Thanks. 

[Joe Homs]

@Tyler Stamets  If you are moving out of the area and are going to take care of your parents I would recommend that you sell.  The reason I say this is that since this is your principal residence you pay $0 to uncle SAM in taxes.  If you convert this to a rental and hold it for a long period of time you WILL have to pay Sam. (Check with your account.)  Why not lock in your profits now, go buy another home in San Diego with as little money down as possible and use you sale money to look at investments.

Good investing...