In 2018 I bought a home for 150k using a VA loan in a LCOA. I refinanced in 2020 to 2.75%, and started the 30 year term over.

End of 2021, I moved 2 hours away to live with my fiance in his Rental. This has been great for our family, as he lives in a nice area (even if HCOL), great schools, next to a park. But now I have an issue: what to do with my home?

Currently I am renting out my home for $1200 (mortgage payment is $850). But we know we never want to move back to that house. We also know that in about 4 years we will be priced out of our rental we currently reside in. I'm considering moving to Tucson and buying a condo. But I won't have enough savings to avoid PMI, and my VA loan is tied up in the rental. Interest rates are on the climb, and I'm having trouble deciding what to do with the house!

I can: 1. Keep the rental, buy another home and pay the PMI 😭😭. 2. Sell my rental and use the down-payment to avoid PMI on a Condo (likely somewhere around $300k less down payment). Which crushes my dream of someday being a snowbird with property in AZ and WA. UGH.

I've got too much in this emotionally. What's the best option in the long run for my finances?

Combined household income= roughly 120k