SFH - Primary to rental conversion

[Matthew Krickeberg]

We’ve out grown our current home (3bd, 1 bath, basement, 2.5 car garage) and are looking to upsize. We estimate having about $100k in equity, $72k remaining mortgage ($375/mo) and an estimated value of $170k+, granted, in this insane market.

Comps in our area are renting for $1500+ per month (we’re within walking distance of a university and booming downtown area).

I feel like we’re in a great position to convert to a rental and leverage our equity but I’m not sure how to approach the conversion of our current home and acquisition of our next. Our equity puts us in a great position (?), I’m just not sure how to use it to maximum efficacy.

We have cash on hand for a down payment, but is it best to not touch it in this case?

(I’ve spoken with our insurance broker and I’m comfortable with those numbers. I would have a PM handle the tenant screening and take a shot at doing the rest of the management myself.)

Thoughts or experiences?