Advice on keeping or renting my condo

[Adrian Ruark]

Hello! I'm looking for convincing reasons why I should rent or sell my current condo I live in (which I own completely) once I move out to the new house I just purchased

The new house (in Queens, NY) is worth 650k. The current condo i live in is valued at about 475k. I'm able to put down exactly 20% in down payment for the new house purchase.

Is it a better overall strategy to keep/rent out the condo which is expected to net me a yearly profit of about 11k after taxes and HOA common charges and simply take out a 520k a mortgage loan for the new house ?

or is it better to sell my condo and use the funds from the sale for the new house?

I calculated the amount of interest payments i'd pay the lender for the first year alone and it amounts to about 22k. This is obviously way more than the 11k i'd be getting from my condo rental income.

[Jason Lee]

Depending on how long you've owned the condo, and how much it's appreciated, you could sell it now without having to pay any capital gains on the appreciation. My guess is that savings could probably be worth a few years of rental income? If you put that equity into your new house you could pay off the loan faster or have a much lower monthly housing expense, and you can take out a Heloc to invest with. Many parts of Queens are still appreciating so there could be some upside to hanging on, but interest rate hikes and the limit on SALT deductions will have a negative impact on housing prices (it's already started to in Manhattan). You have an opportunity to sell at or very close to what is probably a peak in prices. I would take advantage of that.