My Dilemma: Refinance my home or sell it?

[Francisco Escobar]

Hey Biggerpockets Community,

I'm a new member, a soon-to-be investor, and a realtor in the Washington DC area. I have a dilemma and thought this would be a great place to get some feedback. Essentially choices that I see are to A) sell my house in order to buy a bigger one we need or B) keep my current home as a rental and get a HELOC to buy the second home.

Background:
I have about 120k in equity on my home, it's 2 blocks from the yellow line metro, 10 minutes from Amazon's recently announced "National Landing" so I expect it to appreciate.  I have an interest rate of 3.125% and my monthly costs on the mortgage are about $1500.  I think it could rent out for 1800 monthly pretty easily.  That's some cash flow, but it's not as good as some of the deals I'm hearing about on biggerpockets.

If I decide to sell, my next door neighbor has already offered to buy the house from me, and I expect I'd get to keep most of that 120k in equity.  It'd be enough to get to 20% down for the next house.

The HELOC might get me to 10% down, it has its own cost and my monthly payments would be more expensive for the new home.

Next Home: For the price range I'm looking at for my next home, my down payment will make the difference (in principle and interest rate) between a comfortable monthly payment around 2500 or a stretch at over 3000. This isn't a luxury home, it's an average, middle class single family home in the area.  

So from a financial independence perspective, I think I'd be better off selling my home, and keeping my mortgage payment more comfortable.  But from the perspective of an investor, I think keeping my current home is pretty attractive.   

Should I be agressive and try to hold both?  This is the easiest way I could be an investor and landlord now (which is a goal of mine)

Should I be defensive and keep things easier on my budget?  

Thanks!

[Marcus Auerbach]

@Francisco Escobar you own a property in DC that would cash flow on a super low 3.125% note - you'd be crazy as an investor to sell it! You make money when you buy (and hold) not when you sell. So keep it and rent it out!

As fas as the new house for your family maybe a live in flip could work for you. As an agent you should be able identify a home that has upside potential, buy it for a discount and create equity in the process. I don't know the housing stock in DC that well, but perhaps find a duplex or a SFR with a unit in the basement that can be rented out.