Anticipated Monthly Rent is Less than Estimated Expenses, still Rent???!!!

[Sasa Scherzer]

Hello BP Community,

I am new to real estate investing. We currently have one rental property that is fully paid off, generating $2,150 per month in income, with expenses around $1,000. We are now considering house hacking by buying a neighbor’s house due to our kids' school proximity.

Our monthly expenses for our current home are $3,000, and the estimated rental value is $2,300-$2,350. Our goal is to buy and hold for long-term investment. Based on the 1% rule, this doesn’t seem to make sense.

However, the city and area we live in retain property value because of the schools, community, and location. Could you advise on whether we should pursue house hacking and rent out our current home?