I must have done it wrong

[Nick Y.]

Hi all, newbie here and wanted to say hi.

Let me start by saying I know I must have done this wrong. Here is my story.

Wife and I bought the first home in California in late 2004, and when the market hit the bottom in 2009 we bought another house twice as big but costs less than our first house. We did not sell the old house, instead we turned it into a rental.

When we bought the 2nd home, we went to a 15 year mortgage and also turned the first house's mortgage into a 15 year because the rate was too good. We did not have any plan for the first house; we simply didn't want to sell it for a loss. For so many years, we are getting about $1,500 per month from the rent but the mortgage payment is about $1,600. There are also other costs, so our cash flow is negative.

At this point, we don't know if we should continue renting out the house or simply get rid of it. We definitely have a lot to learn from the experts on this forum.

Thank you for reading my introduction, and I'm glad to be part of the community.