Breaking Even Rental

[Pete Jimenez]

Hello, I just completed my 1 year mark living in my current home in Ca under a FHA purchase. I will be moving out and renting out my house and purchasing another property. However, the total rent I'll be receiving will be enough to cover all expenses but I will not be cash flowing on the property. I have about $50k in equity, I live in a market with good appreciation and great renters. With a rent increase in one year I will be cash flowing slightly, my mortgage will be getting paid down by the renter, and I'm assuming I'll gain some appreciation. I know I shouldn't be expecting too much cash flow out of the gate since I acquired the property with only 3.5% down.

Is my situation normal givin my circumstances? Should I be selling instead of renting? I feel in a couple years I'll be in a much better position cash flow wise. 

my wife and I both have great jobs and can pay cash for anything that goes wrong with the house. However. The house is in great shape. 

Any any insight will be great!!