Buying a new home, should I sell or rent out existing?

[adles]

I am going to buy a new home and I am confused to sell rent out my existing home. I think, renting out is better because property up its market price with the passage of time, it will give me more profit than the current price. What is your opinion?

Any idea or suggestion will be appreciated. If you have any idea please underneath.

[203bravo]

Biggest question is can you afford AND will your financial profile allow you to obtain two mortgages?

[Gunnar419]

There are too many factors for a simple answer. I've recently had to make this decision myself.

* Can you qualify for and afford two mortgages (assuming you can't pay off both houses)?

* Do you need the cash that a sale would bring?

* Are you comfortable with having strangers of unknown habits and reliability living in your house?

* Are you prepared to continue paying taxes, insurance and maintenance on your existing house?

* Would the rental income cover all your expenses on the house -- even if you had to do something big like replace a roof?

* Are you confident that real estate prices are going to continue to go up even with interest rates rising?

* Are you comfortable with the concept of being a landlord?

You could probably come up with 10 more considerations. Only you can decide.

[remethy]

I would sell the existing house unless you can afford to cover both mortgages for several months without the rental income.  I had a friend who bought a new house and rented out her old one and it was a disaster.   Her tenants skipped out on the lease, leaving her high and dry, and she was counting on the rental income to cover that mortgage.  She ended up in foreclosure on the rental house and behind on her own house's mortgage.