Should I sell my home or attempt to rent?

[Danielle Bourn]

Hello! I was offered a promotion that required me to relocate back in 2021. I purchased my first home in December of that year for 220K with a 3.49% interest rate. Fast forward to June of 2025 and I was given another promotion but it required me to move again. I found a home that fit my needs and got approved for a second mortgage and closed in June. I've been fixing up my old home in Onalaska, TX and just can't figure out what I should do. 

Two mortgages is not feasible currently but I can continue for another 6ish months. My lender when I purchased my new home said it would be smart to rent out my old home as extra income however my payments on the Onalaska house are $1730 a month with homestead which will be removed once I get new house updated. The only major thing I could worry about going wrong with this house is the AC system as it's from the 1960s but it has been going strong so far! I'm thinking IF I do rent the home and wanted to make money off it I'd have to be looking to rent it out anywhere from $2100 to $2500 and just can't see that happening there. I've also thought that it's worth it in the long run to not make a profit off the mortgage as long as someone is able to pay it since I'd still be able to keep the house. I have 95k in estimated equity in the home which I assume I can use if anything major was to go wrong. The last option is selling it. I want to start building a career in rentals and flipping homes as I'm always looking to better myself and my family. I've always been driven to do better and have enjoyed renovating my 1st home and could see a future in it. I currently owe $193,494 on my old home.

Is there any advice that y'all recommend?

[Jaron Walling]

@Danielle Bourn The gap from your mortgage payment to market rate rent (I estimated at $2300) is roughly -$570 which didn't include future capex, maintenance, vacancy, or PM if you choose to hire that out. You need accurate numbers and expenses. Even if you get $2300 per month you'll be negative cash-flowing. You would turn an asset into a liability overnight. 

"I assume I can use if anything major was to go wrong." - Don't assume anything. You can't just dial up a lender and pull equity for repairs. You need liquid cash, not leverage, and based on the information provided this property negatively cash-flows. That's not investing, it's speculating. 

My advice is to sell this property. You stated you're sitting on almost $100k equity. This gain would be tax free since you lived there for >2 years. Combine that with personal savings and it's launch pad for the next opportunity.