Converting Primary Residence into 1st Rental Property (DelCo PA)
Hi Everyone! I am seeking your input on a situation I am currently facing in regards to making my primary residence into my first rental property. Any help is appreciated!
Background: The house is located in Brookhaven, PA and is a 4 br/2 ba rancher on a dead-end street approximately 1 mile from Widener University and 25 minutes to Philadelphia. My current PITI payment is $1231/month. My realtor has run rental comparisons in the area and the rental range is $1400 - $1600.
I recently refinanced and the house was appraised for $206,000. My realtor thinks selling at $200,000 - $210,000 is very realistic. We paid $189,000 two years ago and owe $171,000.
I have found a great property in a better school district that my wife and I like. I have a good income, steady job (federal employee), and great credit so getting another loan is not the issue. Carrying the two payments in terms of vacancy is because all our reserves would be used to purchase the new home.
Question: Do I sell my current home and take the $10,000 left over from the sale to put into the new house? Or keep the house, rent it out for $1500, and buy another primary residence?