Hi Itay, I'm a vacation rental designer that specializes in data-driven design to maximize ROI.

You would have had to be there for at least that to save on the capital gains taxes (up to 250k). 

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).

I purchase my personal investments to maximize their equity and hold long term.

Retaining your current home at a 2.875% mortgage rate maximizes cash flow, while accessing $65K in equity provides liquidity for your next steps.

We've helped a handful of investors maximize their investments over the past several years and anticipate a robust demand if/when the tax cuts are re-instituted. 

The market is going to go up in the next 5 years. Everyone has a timeline of when interest rates are going to change. Interest rates need to drop a certain amount in order for a person to make a transaction right now....

You could also get a line of credit for about $150k (you should be able to borrow 75% of the value.)The reason I suggest this is…1) you save $40-$60k in selling costs. 2) you have a lower blended interest rate (2/3rds at 3.25% and 1/3rd at 7 or 8% instead of the whole $500k at 7 or 8%) saving you another $1k/mo in interest. 3) you only pay interest on that $150k when you actually use it, not from day 1  Unless you hate this property, or want to buy something you can’t afford without selling, that would be my plan.

I recommend two accounts: checking and savings.

Doing this can save you time, money, and a lot of frustration in the long run.Hope this helps!