Should I sell or rent it out?

[Sandra Habiger]

I own a SFH that's currently my primary residence. Next year, I want to move to a duplex (fix it, rent out one unit, stay in the other half for a year, repeat). What should I do with the current house? Should I rent it out or should I sell it and reinvest the proceeds?

Here is my current thinking. I haven't run the numbers yet to compare both options.

Rent it out:

The house is in a desirable location. I estimate a 95% occupancy.

Estimated monthly net cashflow $600 

So far I know, all HELOCs are still frozen. I haven't looked into a equity credit yet and don't know if they're available either right now. If they are possible, I estimate them to be about $40,000.

Sell:

Estimated net proceeds: $100,000

I would save on capital gain taxes, too.

I will use the proceeds from the sale or the ELOC for the down-payment on the duplex. 

What else should I think of when running the numbers for both options? My long term goal is owning rental properties for passive cash flow.