You rate at 3.62% is pretty good but its on an FHA so you also have to consider the mortgage insurance if this is going to be your forever home.

Of course I can increase deductibles or otherwise decrease coverage, but that is only putting off the inevitable expensive insurance claim.

.🔹 Insurance Challenges – Even when insurance pays, it rarely covers the actual cost to completely rebuild.

Rates are currently in the mid-high 5.00%'s, plus mortgage insurance premium (MIP).

The insurance payout also impacts your taxable gain.

I hold licenses within real estate, insurance and securities for this very reason.

I’d appreciate your perspectives.Here are the details about our current home:3/2 Class A property in a middle-America town with historically ~1% annual appreciation.Purchased in 2020 for $200,000 at a 3% 30-year fixed rate.Remaining mortgage: $150,000.Estimated value: $270,000 (based on recent sales).After selling costs: Likely $100,000 in net proceeds.Rental potential: $2,000–$2,300/month.PITI: $1,200/month ($700 mortgage + ~$500 insurance/taxes).Maintenance/CapEx/Vacancy (20%): ~$400/month.If kept as a rental:Net cash flow (self-managed): ~$500/month or ~$300/month with property management.Low appreciation potential but ~$400/month in principal paydown.Considerations:What’s the additional overhead of managing a second rental property remotely (3 hours away)?

Hopefully your lawyer also mentioned insurance- title and hazard.A quitclaim deed transfer can hurt your title chain and title insurance. 

Yes, there are many builders, property managers, lenders, insurance providers, contractors, etc. that get immediately cut off from our marketplace when their performance lacks.

Third party servicing company for $35/mo handle taxes, insurance, escrow, tax forms, statements etc.