Sell or keep? Los Gatos area
I own 2 homes in Bay area, should I sell one? One is paid off, near Monterey, a block or so from the beach, a rental , and the other, my residence, in Santa Cruz mountains near Santa Cruz, with a low mortgage. The house I live in is very old, built in 1931, in the redwoods and close to the San Andreas Fault and in a high fire danger zone, BUT has been a fantastic rental as well as my residence at different times. I am very concerned with the economic forecast, although homes in my area are selling with multiple offers at present - Should I keep my home property? or sell? and 1031? for something less expensive in a less risky area? I house hack and rent the downstairs studio which covers my mortgage payment. The other home, near monterey, has been rented by the same tenants for the past 4 years and I have just raised the rent, but not by much due to the looming economic depression so as they are happy and want to continue renting. But, of course, there are always taxes! Some of my neighbors are selling quickly and I fear I may miss out on a great opportunity to sell at a good price. Jump ship?, keep? Thoughts?? Advice??
Also, I was debating on whether to 1031 exchange it (as it is a rental all year down stairs and I rent upstairs out in the summers, I think I would qualify or just take the homeowner exclusion of $250k? I am concerned about taxes but the 1031 is a lot of work as I am living out of state currently and don't plan to return until October 2020. I feel I may miss the opportunity to sell when I return so debating whether to sell now, later, or keep the property.
I am employed and have great credit but I just don't want to go into debt any more to take cash out. But what do you think? Thanks!