Should I buy or move back into my rental

[Alejandro Arciniega]

Hoping to get some clarity from you fine folks.

I purchased a SFH in Southern California and have been renting it out for the last 5 years. It's currently cash flowing $800/month. My wife and I have been renting a small unit in an area in town we preferred more. I've always been interested in real estate investment and want to invest out of state. We've managed to save 150K to start start our investment journey but here is the rub. My wife is tired of renting and has become very excited about a house that has come onto the market and wants to put in an offer OR move back into the SFH. What would make the most sense?

1) Keep SFH(rental), purchase the nice new home using that 150K and put investing in real estate on the back burner?

2) Move back into the SFH, loose that cash flow but keep the 150k and use that for renovations and investing?

3) Purchase the nice new home using that 150k and sell the SFH and use the 350k in equity to invest out of state?

4) Something I'm not thinking of?

Thank you guys and gals in advance.