Aren't agent fees and capital gains only applicable after the sale of the house? I think I'm beginning to see your problem, which is that a lateral move is exp

Aren't agent fees and capital gains only applicable after the sale of the house? I think I'm beginning to see your problem, which is that a lateral move is expensive. But the lateral move is only more relative to your initial buying price. A lateral move (in terms of value of your house and in the same area) would in your example cost about ~$135,000. I see why that would cause a liquidity problem but your actual equity is still higher than before.