Jim, where do you want to be in say 10-15 years? IMO, you home in the NC mountains is literally a "gold mine", and I get the impression would be an ideal retirement destination down the road (not just a "vacation house"). I'm an advocate of being "debt free" also, but investment in NC mountain homes/real estate isn't a bad move either. If you view this house only as a "vacation home"...ditch it, but if you ever think NC is where you want to be (and it doesn't suck
) either working, or in retirement, then find a way to keep it. The appreciation you've seen in 3 years is nothing like it will be ten years down the road imo (and I'm not talking about CA "hype" either).