Why is better?

[skymaga]

All things considered (low 600 score), which scenario would be better to acquiring a new mortgage?

1- put down 5% downpayment on a new house, retain current house with a mortgage of $45k, $400 monthly payment and rent it out for $750, showing $350 profit each month?

2-  sell current house, use equity to put down about 20% on new house?

[TimeToRecover]

I don't know which would be better finanically but a big question is "do you want to be a landlord?"

[skymaga]

I do want to be a landlord, I manage multiple rental properties for several people that are living out of state.

My question, when applying for new mortgage, which option would be more beneficial?

[topa]

I'm probably the least of an expert around here, but I would think the banks would prefer a larger down payment simply because it lowers the risk of the loan.