It sounds like you've gotten some solid direction above, but a few flags stood out to me in the above discussions and I wanted to point them out to help make your decision.- You mentioned this sale is tax free 121 exclusion, which is great, and seems like a solid start to your goal.- The townhouse you're moving into is currently a rental, but you plan to live there two years for the 121 exclusion.

Not all but a vast majority based on my doing deals in PA NJ WV OH SC etc etc. 

It seems like your goal is appreciation or that you are willing to sacrifice cash flow for appreciation, as long as your return is trending in the right direction.

Quote from @Ryan Ruppert: I appreciate the quick reply.Do you happen to know if Wordpress or Squarespace has not only direct Booking but direct Billing as well?

Common sources of such properties include:Foreclosures: Homes that have been repossessed by banks due to non-payment.Distressed Properties: Homes that are in poor condition and need a lot of work.Auctions: Properties sold at auction for below market value.Off-market Deals: Properties that aren't listed on the MLS but are available for sale through direct outreach or networking.The key is to buy a property at a price low enough to ensure that even after renovations, the home will appraise for a higher value.2.

@David PopeYou probably inherited a 5.6% interest in a partnership which owns the property, as opposed to having a direct 5.6% ownership of the property.

Interest income is interest income, unless you decided to roll some of the current cash into a self directed IRA at which point your interest income would be deferred for a later time and allow your funds to grow tax free.

I use Rentec Direct which does a great job of tracking multiple owners/properties/tenants with the pooled bank accounts.

PHX is growing so rapidly, so knowing which direction that you'd like to focus on will definitely be key. 

.- Just ask any investor doing deals prior to 2008 Real Estate Crash!