Should I sell my house?
Background:
Eleven years ago my wife and I bought a rough house in a desirable neighborhood for around $150. We lived in it and fixed it up for 10 years. I probably put about $30k in it and a LOT of my personal sweat equity (I remodel houses for a living). With the improvements and and market upswing I speculate it is worth around $270 now. Last year we moved out of the house, and we have been renting it. I get $1,600 for the house and it has an apartment above the garage that rents for $600. So after PITI, it cash flows about $1000/mo.
Obviously I’m happy with that income, but I’d like to buy more properties and start out with flips. I’m wondering if I should sell the house while I have the opportunity to avoid capital gains. We refinanced when we moved and pulled out as much as we could. I think I have around $80k equity left in the house, and that would come in handy financing projects.
Should I pull out while I can avoid the taxes, or hold and enjoy the cash flow?