Sell our home or rent it out?

[Geoff McFarlane]

We bought our current home in 2011 for $97k. We paid cash and have no mortgage. The home is currently worth about $497k. We now have an opportunity to move into my parents home which is bigger and “take it over”. The balance on their mortgage is $190k. 

Should We:

Sell, take advantage of the capital gains law, move, and pay the mortgage off on the new house, credit cards, etc…? (This option would would not carry any debt, all debt would be paid in cash)

Or keep our current house, rent it out, and cash flow NET monthly about $1,500? (This option would most likely add debt by pulling a loan against property 1 to payoff and do some upgrades to property 2, and all credit cards)

Best, 

Geoff