At this point,given your described scenario, I like the idea of saving this property for a long term rental/part of your nest egg, as long as you can stave off a period of under-employment or your jobs are really secure. Buy your home of choice when timing is good. The current house can be leveraged or sold to pay off your prefered houses if prices rebound. If they don’t it will become a better and better source of income over the years. On the other hand banking more than a couple of grand looks pretty good. I would not sell and buy more house right now.