Past performance is no indication of future performance. Property values could go up, stagnate, or go down. Over time, if you are in a highly desirable area where the economy is not dependent on a single commodity (e.g. the oil patch), the rate of growth in property value may exceed inflation. New York City, San Francisco, and similar locations have a history of above inflation returns over time. Other, more mundane locations do not.
A $500k house that rents for $1,700 a month is not going to produce a decent cash on cash yield. What are your mortgage terms? Payment? How much do you pay out in taxes and insurance? I can't see much cash flow if any at typical terms for $220k in mortgage balance. You may well be cash flow negative. Interest here on investment properties is deductible as an expense - is that the case up there?
In your shoes, I would look at my other investments as well. How much equity do you have in the new house? How much in retirement accounts? What about investments other than the $100k you would have left in savings?
If you sell the $500k house, is there a taxable capital gain? How much tax would you have to pay? That could be a consideration as well.
Without more information, I can't say what I would do in your shoes. However, I would never buy a $500k property that rents for $1,700 a month and bank on 6 percent appreciation for my profit. Too risky for me.