Posted by GL - ON on July 21, 2003 at 12:57:45:
How would I know? There are too many variables here. Is your present home a good rental? Can you get positive cash flow? Are you going to buy another house to live in anyway? Are you going to buy more rentals anyway?
Generally speaking, I recommend you never sell if you can help it. Just keep buying. In 10, 20 years you will be sitting pretty. This is the easy way to make a million dollars, believe me. Just buy one house a year and procrastinate about selling.
On the other hand, if you have to sell, I think you get a better tax break selling your primary residence. But if you buy something else or do a tax free exchange, there is no tax anyway. See? Too many variables.