<prompt> Human: I purchased my home 3 12 years ago. The market in my area has been very favorable and I am now appraised at 100k over my original purchase price 40. This is my first home which I purchased with an FHA loan. Currently, I am weighing several options and would like some input:Should I take the money and run? I feel like the price of my home is reaching the limits of it possible value. I have no worry that the property value will go down - there are a lot of improvements happening in my neighborhood and I think things will continue to rise. However, I feel like the rate of appreciation is reaching its plateau. The market is hot Los Angeles and homes on my street are being sold within 30 days of listing. I have two neighbors selling now and wonder if this is the best move. Currently, I feel confident that I could sell for over 100K of my purchase price 250k, but possibly up to 160 over based of recent sales in the area. I have lived here less than 5 years, and understand that I would pay no capitol gains on this profit.If I were to sell, I doubt I could buy anything else in this area or any other neighborhood that I actually like for that price or less. So basically, with the 100k cash I made off the sale of my current home, plus any amount I could borrow which would be less than my previous loan since the lender rules have changed, I could not find afford to buy a place as nice as I have now. My plan would be to rent a cheaper place and sit on the cash, possibly investing it in a rental property or some other more traditional investment. For about what I have been paying in interest, insurance, property tax and HOA fees, I could move into a smaller, but equally nice studio or 1-bedroom. So basically, my quality of living would stay the same by moving, the only thing I would loose financially would by the tax benefits of ownership.What to the personal finance rule books say for my situation?  <response>: theres nothing wrong with taking the profit and downsizing-- but in my life, ive never ever bought a home for investment purposes nor would i expect to sell one for that reason. we all have different goals in life, mine is to live in a comfortable place where i love to be. were up 100 and were not moving, actually id like to stay long enough to pay this place off. 