Would you Sell or Rent?

[Keith Perkins]

So I am looking for some feedback on what you would do.  I currently have a home that has enough equity to put 20% down on a primary residence and a rental property if I were to sell it.  My other option would be to save and put the money down on a primary residence which would take about 2-3 years and take advantage of the 3% fixed rate mortgage I currently have.  If I rent the current home I would get 200-300 over the mortgage and about 850 in principal pay down each month.  I am not expecting the property to cash flow to any significance but I would have a free and clear property in about 7-8 years and at that point I would just be covering normal upkeep, Taxes and insurance.  Currently the property is worth about 200k and is a 3/2.5 ranch in a good school district and less than 10 minutes from a hospital.   This is an Atlanta Suburb.  I am 85% sure the save for a couple of years is the best option but I am curious what others would do.  Currently I am thinking to save and get the primary and turn this into a rental and after a couple of years start to leverage the equity for flips to increase capital for buy and holds.