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.

This sounds like an exciting opportunity @Sean Barnebey!

Investing in Peoria sounds intriguing, especially since you’re drawn to the area and its industrial charm.

Real estate success is driven by demand, it sounds like you will have more tenant options and higher prices in Ft.

But i was looking into taking one for a rental and it sounds thats deductible, which i then saw info where it sounds deducting from primary works too.

Of course "hoping" rates will come down is not a sound strategy so finding a way to assume a loan that already took advantage of low rates is a great option.If you were starting over and targeted a large SFH, would you try to maintain the property in a way that would still attract regular homebuyers (not investors) if you needed to sell?

Yup, nothing sounds odd with that at all. 

That definitely sounds illegal.

Sounds like you have equity in them.2. 

Quote from @Chris Garnes: Sounds like you need the money for rehab?