Negative Cash Flow Rental a Bad Idea?

[Caleb Curry]

I am completely new to the concept of investments and investment property (and new to this site). I've done research on rental properties and negative cash flow but am unclear how to actually measure if something is a good investment. Plus most examples consider buying a house and don't assume you already own the house and paid closing, down payment, etc.

I currently have a 15 year loan (14 yrs left) on a new build house I purchased for 274K with 10% down near the Austin, Tx area.

I am moving across the country to a home probably 100-150k 30 year loan and don't know if I should rent out my current house or sell it (the realtor thinks I can sell for for 290K and cover realtor costs to get what I paid last year).

I'm also currently around 60K in debt (student loans, car, and credit card).

Everyone I know says to sell it because I have debt working against me and it would be a negative cash flow, but from what I've read the Austin area is appreciating 5% and in 14 years, at most, I could have a paid off home bringing in a significant amount of money or sell for a significant amount.

The mortgage is $2500, rent would be around $1900, and a rental management company would be about $250 a month. About $1100 goes to equity each month of the mortgage right now, $600 to taxes, and the rest to interest.

Could someone guide me on how to get started in investment property and measuring if something is a good or bad idea (all recommendations I've received are from people who do not invest in rentals).

The way I see it is that I may have expenses of average 1K a month and, over 14 years, pay less than 200k. But  then could sell the house for 300k+ or have a passive income.