Should I sell or rent my home to start investing?

[Christopher Sarter-Soto]

Hello, everyone! 

My name is Chris and I'm new to BP. I've been a big fan of BP for quite some time, reading and learning day by day. Recently, I've decided it's time to post my own questions and get great advice from you all to begin my real estate investing career. My first question, by the way, is a bit confusing, but it would really help me out to hear your thoughts. The way I see it, we have maybe two to three choices: fix up our home to rent it out, sell our home to purchase a duplex, or sell the home and perhaps purchase a mobile home. These choices should make more sense shortly.

A couple of years ago my wife and I inherited a home due to some unfortunate circumstances. My wife's mother lives with us. Even though it may not be ideal to factor my mother-in-law into the equation, it's impossible to do so and plan for a successful investing career. So, we've been here for a little over two years; however, because the home's maintenance was neglected before we got our hands on it, we've just about made up our mind to move. My wife and I have discussed alternatives to selling our home, but we're not sure what the best option might be. 

If we sell our home, we'd move and live with family or rent while I finish my degree and we can identify a great deal on a duplex. In this situation, we would live in one half, and my mother-in-law would occupy the other. Unfortunately, she cannot afford to pay a decent amount in order for the right cashflow to come in.

Another option would be to sell our home and look for a mobile home to start off. Once I finish my degree, we can opt to rent out the mobile home to my mother-in-law. In this situation, because the price of a mobile home is affordable, we may be able to break even, or even generate a little cash flow, and put her into a good setup without jeopardizing anything.

Lastly, we could choose to fix up our home enough to make it attractive to renters. This would require quite aWe would have to live with family, of course, for a little while, but the fact of the matter is we don't really want to be here much longer. My mother-in-law would have to stay with some of her family for a while until we decided what we're going to do after that.

The fact of the matter is that our decision is complicated because we have to factor in my wife's mother. She is dedicated to helping her out due to her limited income. I have nothing against this, but at the same time we have to be realistic. We're doing well for ourselves and I'd like it to stay that way. Real estate investing is the way we'd like to go.

What do you all think? Please ask any questions you might have. Any and all suggestions and advice will be greatly appreciated.

Warmest regards,

Chris