First Move - Rent my current primary (VA)

[Reynaldo Ramirez]

I wonder how you all feel about using my current primary (VA Loan) as a rental and then getting a new VA loan (I still have entitlement) for an upgraded primary residence.

I owe $180000 and the ARV $320000. I would pull out about $10,000 out of a HELOC for repair. So my monthly mortgage would be $1300 and I can rent for $1900 per month (conservatively). Assuming $600 income minus expenses I could hope to cash flow $250 because it is an older home, but has been remodeled over the 15 years we have lived in it (some refinances over the years)

We would get a new VA loan at around $400000 and pay that from the W2.

The area I am currently in has sought after schools and has appreciated slowly but steadily. 

It does have a big yard so I might have to charge for lawn maintenance if the renter doesn’t want to worry about that. 

Does this sound worth it or should I just sell the property and use the equity to purchase a rental somewhere else?

Thanks!