You can take the capital gains (I assume that the ~$250k) tax free due to the sec121 exclusion if it was your primary 2 out of the past 5 years.Since you are concerned with rising cost and limited increased rent, sound reasonable to sell. 

But if I had to choose one, single family portfolio would be the easy pick.Less turnover & no tenant on tenant conflicts, better appreciation, more buyers if you want to sell, easier to finance, and more cash out options. 

Make it a point to sit down and review the different real estate investment properties you can invest in (single family, mixed use, office building etc), talk to industry professionals to understand the real estate market, research industry trends and available properties, work out your budget for this investment (an example of some expenses to consider can be found in our article on house flipping expenses), and come up with contingency plans in case things do not go according to plan.It might sound like a lot of work (and it is), but you will regret not doing this should your expensive deal go sideways and you are left scrambling to find a solution.

Sounds like a great deal.

Anyone can push paperwork, follow the law, and abide by the code of ethics—that's the easy part.

Converting a SF into a MF isn't just that easy either.

@Vincenzo Campaniello yeah, sounds like you are completely lendable to me.  

In this case it sounds like they've been communicative. 

One of the big tasks is identifying and hiring a good manager, no easy task. 

It sounds like a solid investment, shoot.