Hi @Stephanie RidgwayStephanie, this is a really thoughtful plan — you’re doing the hard part first (getting liquid) and then asking how to not mess it upA few things to consider:Separate the tax money from the investment money.If you already know there’s ~$266K going to taxes, that bucket shouldn’t take risk.

It appears agents are throwing investors in the same bucket as wholesalers and they’re missing out on a lot of opportunity.

Leverage from existing rental can be a beautiful thing but pulling from the correct bucket is crucial.

Cool question, and honestly, it’s one of those things that separates casual investors from the ones who actually make solid, repeatable decisions.When I’m analyzing a deal, I tend to focus on three buckets of data:1.

As to how to DCA, it makes sense to put the funds in a relatively safe bucket while you DCA.

Based on the facts you presented, you will be actually using 60%, not 40%.The initial phaseout of bonus depreciation was as follows:2022 - still 100%2023 - 80%2024 - 60%2025 - 40%2026 - 20%2027 and beyond - 0%Because the property was acquired in 2024, that would mean that the bonus depreciable components identified with a cost seg study would fall in the 60% bucket. 

It’s more of a retirement tool but can serve as a secondary bucket if you’re thinking long-term.Investment Apps or Brokerage Accounts (like Acorns):These automate investing and can provide higher returns, but you’ll be exposed to market swings.

I use a 3 bucket strategy TSM (S&P500 when tax loss harvesting), RE and cash/bonds which dictates where my funds go when I consider a purchase or rebalancing is required.

Here is an example of how: How to make the map (free + fast)Go to Google My Maps (not regular Maps): https://www.google.com/mymapsCreate a new map → “Import” on the first layer → upload the CSV you just downloaded.Set “Name” as the title column and “Address” as the location column.Click the paint-bucket icon to style categories (Parks, Museums, Food & Drink).Rename the map “Guest Map” → Share → change link to “Anyone with the link – Viewer.”

My concern is selling now and later regretting it if our kids end up here and it’s priced out.Options I’m weighing:Sell within the next year and use the §121 exclusion.Pros: harvest tax-free gain; redeploy into 3–5 cash-flow rentals; simplify; diversify.Cons: lose the “legacy house” in a prime area; potential regret if kids want to live here later.Keep and re-rent for cash flow and appreciation.Pros: maintain foothold in an A location; optionality for kids later.Cons: likely forfeit §121; future sale may need a 1031 (adding timing/loan complexity); modest cash flow now.Hybrid ideas I’m open to:Sell now, earmark funds in a conservative bucket to help kids buy later (if/when they move back).Sell part of the equity via HELOC/portfolio loan, keep the house, and still buy rentals (trade-off: leverage/risk).Move back in later to re-start the §121 clock (understanding holding costs/complexity and tax rules).Questions for the group:In a scenario like this, how do you weigh tax-free equity harvesting now vs. long-term optionality in a blue-chip location?