Renting the current home and buying a new home in San Diego?

[Namal Burman]

Hello Friends,

Had posted the below in another category copying it here to get more local folks:

I have a property in 92127 area (Del Sur) which is my current residence and its has Mello Roos (MR)and high HOA even though its a new construction@2013. I was wondering whether it is a good idea to rent my current one out and buy another one near 92130/31/29(Scripps Ranch/Carmel Valley/RP) where there is no Mello Roos and low HOA. Reason being i can put 20% down and get current lower interest rate for the new one under 4% and not pay Mello Roos and low HOA. The only issue would be that to buy 2000sq feet house in scripps ranch would be around $1million and i have to put 20% down and hope i can rent out my current property that would cover the current mortgage and MR+HOA which i think it would as the location i am in is really good.

Let me provide a synopsis of my current standing. I bought a small condo in Mira Mesa @2009 and stayed there for 2013 and rented it out after moving to my current property at Del Sur @2013. So i have good equity on both properties. Now interest rates dropping back to below 4% has made me wondering whether i should buy another one in probably 92130/31 zip code since due to good schools(as i have a 5 year and 3 year old ) and to be near to work for both wifey and me(work in Mira Mesa) and both zip codes have no MelloRoos as such. 

I was wondering whether it will be a smart move to buy another one in 92130/31 zip code under 1 million (as i it needs to be atleast 2000 sqft and SFR) and get a low interest rate and rent out the Del Sur property.

The only thing that bothers me is if i buy something around 1million and putting 20% down payment even though i can afford the loan and have a job security for atleast 5 years( cross my fingers and can't predict job security beyond 5 years), i am hesitant to get into bigger mortgage as i want to retire early let say in another 10 years and a bigger mortgage(around 800K) may turn out to be a bad decision.

Regards,

namal