Considering new home...keep current and rent or sell?

[Andrew Yaggie]

My wife and I are growing our family and considering a larger home...current home around 2,000 sq feet, 4 bed, 2 bath, 2 stall garage.  Based on market conditions would probably sell for 200 - 225,000 in our area, likely could rent for 1,100 - 1,200 a month.  After taxes/insurance, would net about $6k a year.

New potential home would be in the neighborhood of $300k.

Would you keep the current residence and rent or just sell and move on?

[Thomas S.]

A 200K property with rent at $1200 per month will be deep into negative cash flow. Normally a SFH will have expenses in the range of 50% of rental income. To have any hope of positive cash flow this property would need rental income close to 2K per month. This is not a viable investment income propery. Your only option is to sell.