If you already own a home and you’re ready for something new, you’ve got two main choices: keep it as a rental or sell it and move on.
Both can be smart moves—but for different reasons. Let’s walk through what makes sense for your situation.
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Option 1: Keep It as a Rental
Turning your current home into a rental can help you build long-term wealth, but it also comes with more responsibility.
✅ Pros:
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Monthly cash flow: Rent payments can cover your mortgage (and sometimes add profit).
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Equity growth: Your tenants help you pay down the loan while the home continues to appreciate in value.
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Tax benefits: You may be able to deduct expenses like mortgage interest, repairs, and depreciation.
⚠️ Cons:
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Landlord duties: You’ll be responsible for maintenance calls, repairs, and managing tenants—or you’ll need to hire a property manager.
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Reserves required: You’ll need money set aside for repairs or months the property sits vacant.
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Approval limits: If you plan to buy another home soon, keeping this one as a rental can impact your next loan qualification.
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Option 2: Sell and Move
Selling your current home can give you the freedom and financial strength to buy your next one with ease.
✅ Pros:
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Access your equity: Use your profit toward your next down payment or to pay off debt.
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Simpler financing: Lenders view your new loan as less risky when you don’t already own another property.
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No landlord headaches: You can focus fully on your next home without managing a rental.
⚠️ Cons:
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No future appreciation: Once you sell, you no longer benefit from that home’s rising value.
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Capital gains potential: Depending on how long you’ve owned it, you could owe taxes on profits (though most primary homeowners qualify for exemptions).
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How to Decide
Here’s a simple way to evaluate your next step:
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Review your payment comfort — Can you comfortably handle both mortgages if needed?
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Know your equity — How much cash would selling put in your pocket after fees and payoff?
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Think three years ahead — Do you see yourself wanting to manage a rental, or would you rather simplify your finances?
Want to see what each option looks like side by side?
DM MOVE UP or call 601-927-4994 and I’ll create a custom net sheet that breaks down your profit, payment, and equity growth potential—so you can make your next move confidently.
