Advice: Should I Sell or Rent

[Alex L.]

History: We are 6 years into renting our first home, it has gone well and we are comfortable renting and what comes along with that. We are now moving from our current home(call it the 2nd home for purposes of this conversation) into a larger residence(3rd home). 

Question: Should we rent this house(2nd home), which has offers for $820k off-market to sell, or rent for $5k, which also has interested parties? 

Details: Current mortgage is $480k at 2.625%, $3,400 monthly payment. 

New Home: I would need to dump some of my brokerage accounts for the downpayment(so some capital gains taxes would need to be paid to finance the downpayment on the new house) or if I sold our "current residence(2nd home)" I wouldn't need to.

I understand the tax incentive of selling within 5 years of living there for 2 years, however, the cash flow seems larger then what I would get taking the money and investing in new RE in the future. 

What do folks recommend in this circumstance?