I turned my first house into a rental property when my wife and I bought our second. I've got some ideas on how to compare this house with selling and putting a down payment on 2 other smaller houses as well. The current house is just a little big for a rental in our area, so I'm right at 1% and know I can buy others that are bringing in rents around 1.5%. I know there are a ton of factors but I was thinking this:
Run the numbers on my currently owned property, and maybe see how much cash and equity it would produce in 5, 10, 20 years. Then compare this with the estimates from two smaller houses, combined. It's hard to get a cash-on-cash estimate because I put very little down prior to living in the house for 3 years.
@James Maher You don't give enough information to really say, but it is pretty tough to make money on a property that is getting 1% of the value in rent per month. Is this in an appreciating market?