Need your input BP

[Rahul Singh]

Hello Everyone,

I need some advise from you all.

We are purchasing a new home and have some equity in our current home.  We have the flexibility to not touch the current property and rent it out.  However, I'm not sure if we are getting the best return on our investment with our equity in that property.

Here are the numbers:

Type: SFH

Rent: $2600/month

Current Property value:  $530K

Current Loan Amount: $340K

Other Cons:

-Across from railroad tracks.  On busy road.

-Below average schools

Pros:

-Corner lot

-Very well maintained home. In very good condition.

Market is hot in the area right now and we can easily sell this home with multiple offers.  My gut tells me that this is close to the peak of this home's value and it's not going to increase much over next several years as market is going to go side ways.

What do you guys think?  Can I do better with the equity?  Should I just rent is out?  What would you do?  If I do pull the money out, then I'm looking at loosing close to 28K for sells commission too.  Please consider that in your analysis.

Please express your ideas with some numbers to support your input if possible.

Any input is much appreciated.  Thank you much in advance.