To sell our home, or rent to continue growth through equity?

[Cody Faucher]

I live in the outskirts of Mechanicsville, VA just outside of Richmond. My wife and I have lived in our current home for three years but are in the process of moving to Pennsylvania. Our real estate agent is saying that we can get $80,000 more than we paid for the home currently. We have an offer from a friend that would like to rent our home for $200 more than our mortgage. So far, it seems our home was a good investment after hearing that. Should we keep our home, rent it out and continue to build the equity? Do you think the housing market specially in this area, will continue to grow as it has?

[Gregory Schwartz]

What is your goal as an investor? What would you do with the 80k if you sell?

I was in a similar situation moving from NC to TX. I had lived in my house for about 5 years and had 60k in equity. I did not want to manage the house from a distance and had plans to grow a portfolio in TX. So we sold and put the TAX FREE profits to work here in TX.

If your long-term goal is to own 2-4 rentals. Use that to supplement your retirement and arent a RE junky. Then I'd say it's worth keeping. Let it continue to appreciate. 

Keep in mind you can keep it as a rental for up to 3 more years, and still sell without paying capital gains tax. As long as you've owned the home for 2 of the last 5 years. 

https://www.biggerpockets.com/blog/capital-gains-tax

Hope this helps :)