To the amazing group here I am seeking some advice. My current home has $175K mortgage left and it’s at 6%. We have $175k to pay it off, but we are looking to move into a new home ($500s) and want to use it as portion of down payment and rent the existing one. We may be 400-500 cash flow positive if we rent out the current one (not closing the loan). What do you folks suggest.

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I was in your situation a while back. I kept the house, rented it out and bought a larger home for the family. Ultimately it was worth it financially but it was not without its headaches. One of my tenants was a hoarder and did about $15k damages to the house. By the time I was able to remove her from the property, she only had an $800 car to her name with no other assets, meaning there was nothing to go after. The next tenant I had was excellent and there long term. He was also quite handy so he did some upgrades at great prices for me. I've expanded to four rentals now, and while I don't have a true net cash flow where I get to enjoy the money, they do pay for themselves and I do have a good bit of equity in them which gives me peace of mind for passing something on to my kids. Don't get me wrong, they're definitely a pain in my ass to manage while working full time and some of the tenants expect you to move mountains but looking at it holistically for now it's worth it.

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We kept the older home and wish we would’ve just sold. Being a landlord for a few hundred a month in cash flow is just not worth it. The house will likely appreciate over time as well, but that money would likely appreciate faster in an investment portfolio

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Cash flow is one important metric but not the only important metric when it comes to deciding whether to rent your house.


How much is the house worth and what is the expected rent?
Is the house in an area that has experienced appreciation/is likely to continue to appreciate?
Are there any major repairs (5k+) expected in the next few years?
Do you actually want to be a landlord? One property is super easy but still takes some effort, especially around lease up.

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If it’s going to be your only rental, just sell it and take equity over your new home. If you plan to expand your rental portfolio then keep it. Not worth being a Landlord for one rental.

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