Thanks for everyone's feedback.
To offer more info, I have about 28 years left on a fixed mortgage at 3.875%. The house was built in 1924, but has good bones and is in good condition (new tankless water heater, new basement electrical, new shed, new exterior paint, simple landscaping, 8-year-old roof, etc.) ... like all houses requires maintenance but is generally low maintenance.
The schools aren't great, but it's in a hood that's becoming trendy (brewery, coffee shop, pizza place, Italian restaurant all opened in the last 5 years, close to public transit, 7 miles from downtown) and did not suffer as much in the real estate crash as other areas of Portland.
My mortgage is $1,170 per month which includes the escrow account for homeowners insurance, property taxes, etc., and about $315 per month goes toward principal.
I do have enough of a down payment to purchase a more expensive home (~10% DP for 450k house), which like one poster said is a good position to be in.
Does this change anyone's perception/evaluation of my situation? By the time I move in 1-2 years, I could very realistically get $1,600 per month in rent, if not $1,700.
Thanks again.