"trying" to get into property renting

[Tom Insixiengmay]

Total newbie here so please bear with me if you read through this and think this guy as no idea what he is talking about. There is a good chance I don't. Here's my "short" story. Currently living in my first/starter home I bought through fha 7 years ago (218K now at 160) Finally starting to refi process on this house. Neighbors house is about to go on the market and I always eyed her place. We discussed and verbally agreed on a number. My concern is should I sell my starter home and take the equity and put it toward the new place OR put it down on property else where? Also debating if I really want my starter home to be a "revolving door" for my cul-de-sac? We are a pretty tight knit set of neighbors (6 of us) and I feel like I'd be ruining the neighbor hood.Suggestions? Do people rent out property they currently owe money on?