Should I sell or 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?

[Theresa Harris]

You mention you have $95K in equity in the home- is that due to you paying down the mortgage or the house value going up?  If that is what you will net from the sale of your home due to the house prices increasing, then you are probably better off selling so you don't have to pay capital gains on that. 

What Jules was getting at is there are some homes that work better as a rental than others.  If you'd want to rent it out for more than the market value, it doesn't make a good rental.  Sell it and look for a place where what you charge for rent is market value and the numbers make sense.

Most people don't make a lot off long term rentals each month. Where they make the money is the tenant paying down their mortgage and (in an ideal world) house prices increasing.