Need advice on rental property

[Zack Ellard]

Ok I need some advice. I own a house I bought before I married my wife. She already had her own home as well. Long story short, we are living in hers and are fixing mine up to rent. It would be our first rental. Here is dilemma... House is probably worth $135k to 140k. Estimated to rent for $1200 to $1300 a month. It's 4b, 2b 1960 sq ft with a game room/optional 5th bedroom. Mortgage left is $81k with payments of $760 a month which includes principal, interest, property tax, and insurance. We thought about selling and using the equity for a down payment on a duplex to provide us 2 doors instead of 1. Problem is that if I sell, I will lose $6k immediately for a prorated soft second mortgage from the Cherokees. (You have to live in house 10 years not to have to pay anything back) What would you do? Rent or sell?