Rental or Brokerage for gap

How's your decision-making coming along?

Running some numbers may be useful, though that tax clock is very real and will loom quickly. While you enjoy the hands-on part, factoring that longer term is important too. How much will you want to have your time devoted to dealing with the property? How much will it be in the back of your mind?

In our experience, we rented out our home for a while when we started traveling full time in 2022, then sold it in 2024, in part to beat the clock on the homeowner exemption. Really glad we made that choice, not just the financial side, but after the sale we realized how much mental load came with keeping the house.

For you, it sounds like there are some favorable numbers, so the considerations may be more on the straight-up math. When you run numbers, is it looking like the home does better for you over time, even with the change in cap gains should you sell down the line? Plus, after that 11-year payoff for the mortgage, what might be needing bigger updates/replacements (eg, roof, electric, etc.)?

For me, freeing up cash and mental load was huge. Brokerage accounts have ups and downs, but they never need a new fridge or have plumbing emergencies in the middle of the night.

I would sell.

My two cents is that it comes down to if you want to manage a rental property. Some people are up to the task: willing to do or manage facility issues, vetting and dealing with tenants, etc. Other people (me) are happier with passive investments. Good luck with your decision!