Running the numbers to figure out my first step

[Dustin Graham]

I'm still trying to figure out what my first step is going to be. I've looked at a lot of different options. I think I'm down to two main considerations.

I currently own a 3/2. I'm considering buying a 2/1, then renting out the 3/2. The property must be <1 hr from my work. So this is a bit restrictive since even 2/1's are a bit expensive around here. I would owner-occupy so I could put 5% down. These are around 200k in my area.

Alternatively, I may look for a 2/1 within a 5 hour radius in the 60k range.

What really gets me, is the current 3/2 that I'm in is valued at around 315k. Assuming a 10% down payment, the 283.5k would have a monthly P/I of $1353 (4% 30yr).

Places around here appear to be renting for around 1600! I think it may be pushing it to try to get 1700/month.

I realize I didn't buy my current house with rentals in mind, but how can I justify renting it out. With the 50% rule, I'd need 2700/month! 1700-1350 = 350 for insurance, taxes, vacancy, utilities, capex, etc.

What are my options. I suppose I could owner occupy a 2/1, then sell this place, and re-invest in another 3/2 that has better numbers... But is that worth the closing costs and such?

So much to think about.