Negative Cash Flow — still rent it?
Hi I have a unique situation on my hands. I have the opportunity to buy another home in the same communiting area with a VA Loan with 0% down. The current home I live in carries a 15 year mortgage that runs $1550 per month. I think I could rent the property for $1400 per month. The 15-year note is nice because every month about $1000 goes directly to principal with the downside being the high cost. I have about $20k in equity in the house now. I could sell it and take the equity or rent it for the loan pay down and just deal with the negative cash flow. Has anyone ever had this problem?
Would you sell it or rent it even though it will cash flow negatively?