How is the market in the suburbs? If it is a hot market, I probably would sell now. It is your primary residence, so no capital gains tax (unless the gain is over $500,000). Then move into the apartment you own. If the apartment is too small for you, find a rental in your present area. Wait until the market cools, then start looking for the new house. Once you know you are ready to move, get a preapproval from a lender (don't do that now, because the approval is only good for around 60 days),

Now you have ducks in a row...down payment, preapproval, and you only need to sell the apartment. And, maybe you won't. If rents go higher and you still have the great tenant, you may want to keep it.

I'm a realtor in the Pittsburgh area. IF you can afford it, here's what I'd recommend. First, take out a home equity loan on your NY home. Most lenders will not approve this type of loan if the property is on the market, so you must do this before listing. Next, find the waterfront home you love in your new location using the funds from the HELOC as the downpayment. List your current home, then move into the new home.

It would probably be helpful to have a conversation with a few local agents to get their thoughts. This will give you the opportunity to decide who your agent will be so you can move things along quickly once you've found your dream home.

This is the least disruptive way to move, IMO. But you need to either have the funds for downpayment on new home either in cash or via home equity AND qualify for both mortgages.

I've recommended this to many clients and I personally used this strategy when I moved 1.5 years ago. We closed on my older home 3 weeks after moving into the new home, so I paid very little in interest.

@elcieg: Thanks for your input! The housing market in the suburbs is fairly hot, though it has slowed down somewhat as the COVID recovery takes root in the city and mortgage rates rise. Our gains will not exceed the $500K cap gains limit, but we have racked up a good bit of equity in six years of ownership. However, selling now and moving back into the city apartment is not an option if I want to remain married, LOL. Even the possibility of avoiding cap gains taxes by making it our primary residence again for a couple of years would not sway him. Theoretically we could move into an apartment in the suburbs, but the rent on something suitable out here would probably be as much as our mortgage and would require us to pay to store furniture, etc.

It's hard to say what will happen to the suburban market over the next 1-2 years, but I believe that my specific location is going to become even more desirable due to the ongoing construction of a very large employer nearby, as well as its proximity to public transit into the city. Given this development and my husband's reluctance (read: absolute refusal) to move back to the city apartment, I think it's worth waiting to see what happens rather than selling now.

@Rachel: That is a great idea and one I hadn't thought of - we could do a HELOC on either the house or the apartment (though there is probably more equity in the house). It keeps our options open in terms of the apartment sale, too. We are planning to use the same agent we used when we purchased the house, so maybe I'll give him a call now and discuss our general timeline and options. As for the new place, would you recommend reaching out to realtors in the new location this far in advance? I know they won't know what will be on the market in 18 months, but perhaps they'd be willing to keep us apprised of any suitable homes that come to market (or are offered off-market).

One thing complicating matters is that the "high" season for listing in our new location seems to be end of summer, rather than spring as is normal in our current location. What are your thoughts on listing in the fall? I'll be sure to take exterior photos in the spring when the landscaping is at its most beautiful, but beyond that, are there any drawbacks? Obviously we could just pay both mortgages for a few months to wait for a better time to list, but we'd like to avoid that if possible. Thanks very much for your advice!

Yes, I'd reach out to a realtor in your target area and let them know your plans. A well connected realtor has ways of networking with their peers and may hear of something coming on the market that will be perfect. You may even get a shot at it before it hits the market! Have your financial ducks in order. Apply for the HELOC(s) and obtain mortgage pre-approval so you are ready to act when the perfect property becomes available.

Actually, our location is known for having both the lowest property taxes and the worst schools in Westchester, LOL (at least at the middle school+ level - according to our realtor the K-6 schools are good and families often start out here, then move when their kids approach middle school). DH's daughter was starting college when we moved here so we didn't need to worry about schools. Our neighborhood consists mostly of empty-nesters/retirees, though we are seeing more younger couples and young families move out this way. Our proximity to the city is also attracting more and more young singles, though they are much more likely to choose downtown condos than a SFH.

Anyway, all of that to say that while our target buyer may not have kids in school, it probably doesn't make sense to limit ourselves in case they do. It's a 4br 2.5ba home, so certainly sized for a family. I'll discuss with our realtor - thanks!

I moved from CA to PA and needed to understand my options and pricing in the market I was moving to. I went out with my realtor twice a year for 3 years prior to my move to see what was on the market that was in my budget so I had a good feel for what I could buy. My realtor also set up a daily e-mail that had any homes that came on the market that fit my criteria. When I finally pulled the trigger and sold my old home it took me less than a month to find a new home. I was fortunate and had a place to live during the transition between the two homes. This was pre covid, so the market was much more stable. I think the market has begun to stabilize post covid in most markets, so it would be a viable game plan again.

Since you have a great tenant and the rental market is strong, holding onto your NYC co-op for now seems wise. As for timing, selling the apartment when the rental income is at its peak could maximize your gains. However, given the limited properties in your target market, it might be beneficial to start looking for your new home sooner rather than later. Keep monitoring the market trends and be ready to act when you find the right property.