Rookie Question - Equity for Down Payment, and Rental Possibility?

[Greg Miller]

First post, looking for some guidance on what steps to take and if this is an achievable goal. Thanks in advance!

We bought our first house in 2019, and refinanced in 2020 at 3.25%. We're outgrowing the house and are intrigued by the idea of using the equity in our primary residence to serve as a down payment on a new house and turn the current one into a rental - preferably using a management company. It feels like a lot of steps at once having never done anything like this before, so I'm looking for advice on a.) what is the best order of operations for making this happen, and b.) do you think the numbers line up for this to be a smart move?

Loan - 30 year fixed @ 3.25%
Loan balance - 282k
Appraised value - 443k (as of March '23)
~ Equity - 161k

Current Mortgage Payment - 1.8k
Monthly Rent Comps - 2.1-2.5k