House appraised in value, better rent mine or invest in another?

[Andres Guerra]

Hello everyone,

I am looking to buy my first investment property and could use your guidance! Thankfully, my house has appreciated in value significantly and although it is nice to have a low mortgage, I could be making at least $1,000 per month if I was renting it out (rent avg. around the area vs my mortgage). I have been considering making an investment on a house to rent out but since I would be buying at market price, I suspect that house would provide a return of investment of around $200/month. Would it be better to consider a lateral move on my home (perhaps just a bit of an upgrade) and put my own house for rent? Curious what your thoughts are. 

Thanks in advance! 

Regards,

Andres