Sell paid off house or lease?

Question

I live in Texas. Currently own 2 homes (the one I live in and another rental property). Both of my properties are family homes (3 bed 2 bath). My current home is already paid off. I could potentially lease this home minimum $1750/month based on the area. I am leasing out the second house which is paying all expenses and profiting about $450/month. My question is this: would it be better for me to sell my current house which is already paid and get lump sum of money (which has also appreciated about $75K since I bought it 6 years ago. I could probably sell it for $225-230K if not more), OR buy a third home (that I would move into), keep the house and lease it to get about $1750/month in profit? If I were to sell, I am thinking of using the approx $225K towards 2 down payments and pocketing the rest. Thanks so much guys, really appreciate any advice.

By the way, I could also get a physicians loan since I am fresh out of residency. Thanks again!

By the way, I could also get a physicians loan since I am fresh out of residency. Thanks again!

John Geer · Answer

@Joseph Firmin

Thanks for the advice. I guess I would say I want to be an investor. My plan is to move to a home, stay there as long as my job permits, then when I move lease that house later. I may also want to get into purchasing condos to lease as well. I like leasing to UTMB crowd since I know what kind of people it attracts. The homes I own are close to UTMB.

Joseph Firmin · Answer

Hey @John Geer, congrats on being in a great spot to make some moves. Without knowing your goals it is tough to provide an opinion. Do you want to grow passive income or want to be an active investor? SFH or multifamily (or another RE asset class)? If you bump your question up against your goals - where do you land? That should give you some clarity.