Have enough money to buy but now what ?

[Michael Valdez]

Hello BP,

I want to thank everyone in advance for their feedback and guidance.

Here is my situation. I currently own a town house in South Florida and I have saved enough money to buy my first rental property. I'm not sure if I should sell my current home or rent it. I looked into a refi to lower mortgage payments to get higher ROI but the numbers still don't make sense. If I sold my home it I would make about 40k and I can use profit plus cash on hand to buy a MFH here in South Florida. I feel a MFH will have better ROI than my current town house and it would be great for long term passive income.

On the other hand ,

If I don't sell and keep the property to live in would you recommend buying out of state where maybe I can buy a house for less than 100k cash and ROI numbers makes sense ?

Im not sure which way to move and if keeping my first home even makes sense. Please help this rookie !