Capital gains are calculated as:Sale Price - (Original Purchase Price + Capital Improvements + Selling Costs) - depreciation (if applicable) = Capital GainYour mortgage or HELOC balance does not affect this calculation—it only determines how much cash you take home after the sale.In Massachusetts, if the home was your primary residence for at least 2 out of the last 5 years, you may qualify for the Section 121 Exclusion, allowing you to exclude up to $250,000 (single) or $500,000 (married filing jointly) of the gain from federal capital gains tax.

We own our house in Seattle and are trying to determine the best strategy for our move - what approach would net us the most money over the next 1-3 years.

How is the $10mm valuation determined.

My thinking immediately turned to researching local rental costs per square foot to determine income potential with triple the current square footage.

Just remember, it's a challenging journey that calls for commitment, determination, and a mindset that's open to growth.

To determine if an apartment building is a good deal, look at the property's cash flow, cap rate, and potential for rent increases.

If you are determined to pay one off, then pay off the lowest balance first. 

Just minutes away is not a good determination of rents.

Your attorney should also determine if this is legal in the state(s) you’re lending in.

Once this is determined you can select the best neighborhood and asset that fits your capabilities.