So, I am thinking of couple of strategies.1) To sell and reinvest in other properties, i will have to do a 1031 exchange since it has been about 5 years since it has been my primary residence.2) continue to rent it out and wait for value to increase further.

I turned my first primary residence into a rental and the lender for my next home used 75% of the rental income towards my DTI from day 1.

That said, I think you wouldn’t have an issue as long as that property is listed as your primary residence: all the bills in your name and change your mailing address.

That would be great but this is not a primary residence so I think that banks are going to be pretty tough on me.  

I am looking at a home as a primary residence, and it is listed for auction.

Also know, that to my knowledge, STAR can only be claimed on your primary residence.

@Jacobus Rex only on my primary residence.

My friend who bought his primary residence in 2014 has his home appreciated by about 500k.

I wouldn't include your utilities as an expense as it is your personal residence and not part of the rental. 

You can do a cash out refi as a NOO loan at 70% LTVI believe HELOC's have the same OO vs NOO rulesYears ago I was doing a OO refi and my lender was dragging his feet.  6 weeks in I found a new personal residence and because I had intent to move I have to refi it as NOO