Should I rent out my first house without 20% down?

[Doug Stumborg]

I currently own a house in a high demand area that has gone up 15% in the last 2.5 years. I want to rent this house out and move to a new house since my family is growing (2 kids under 2 in August). If my current house does not have 20% equity is this automatically a bad decision? I believe I can rent the house for $2000 which would give me $300 cash flow and pay $600 towards the principal a month. Will a bank still finance me for a second house and count the rental income?