Always a good read in this thread.
It's been a while since I've checked in so I figured I'd post an update. My Real Esate (rental) plans changed this year. The house we bought for our primary residence a few years back had appreciated enough to sell, cash out and pay off our rental plus have some extra to invest. It wasn't a decision made overnight but our long term, very good renter put in their notice so the timing was perfect.
The sell of the house took a little longer than expected and we had many sleepless nights. We ended up getting asking price(minus $5K in closing) even though we had lots of competition in our price range. The 45 day escrow ending up being about 65 with delay after delay. Finally, we closed and got funded.
We moved back into the rental house which is now paid off. We had lived in this house for 10 years previously. We always considered it to be our "Forever Home" so it was an easy transition. I am pretty excited to have my shop back too. It's got a 800 sq ft shop with 11' ceilings and A/C.
Old pic
On paper, this financial move is only about a $400 swing in our favor. Which will dwindle considering no longer having the mortgage & rental writeoffs. Although, I think my stress level will be much less without the rental.
I know there is still a chance of going through this whole process again in the future. When the time comes we'll be confident in our ability to make it happen after learning so much this first time around. If the housing bubble pops again we'll be ready to pounce.