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Hi. I'm glad that you're taking my call. I own two houses. One of them I just bought recently at $1.2 million dollars. I put down just 25% down and I mortgaged $900,000. Okay. Now, my first house, that is $850,000 worth, $150,000 remaining on the mortgage. The rate on the first house is 2.7%. That makes monthly payment of $2,000. Now, the question is,

Hi. I'm glad that you're taking my call. I own two houses. One of them I just bought recently at $1.2 million dollars. I put down just 25% down and I mortgaged $900,000. Okay. Now, my first house, that is $850,000 worth, $150,000 remaining on the mortgage. The rate on the first house is 2.7%. That makes monthly payment of $2,000. Now, the question is,

Is it better to sell the first house and pay the equity toward the second house so that I can have lesser or smaller mortgage payment monthly? Or should I rent out the first house and pay the rent difference toward the mortgage of the second house? Because the rent difference is about $2,000 a month because it could rent out about $4,000. Okay. Keep going.

Is it better to sell the first house and pay the equity toward the second house so that I can have lesser or smaller mortgage payment monthly? Or should I rent out the first house and pay the rent difference toward the mortgage of the second house? Because the rent difference is about $2,000 a month because it could rent out about $4,000. Okay. Keep going.

If I make $2,000 from the rent difference, that rent difference can go toward the mortgage of the second house and the rest I can pay through my income. Which one is a better investment pathway forward?

If I make $2,000 from the rent difference, that rent difference can go toward the mortgage of the second house and the rest I can pay through my income. Which one is a better investment pathway forward?

This is my only debt.

This is my only debt.

I make around $350,000 a year.

I make around $350,000 a year.

I live in the new one that I just bought.

I live in the new one that I just bought.

Yeah, the previous one is being painted, getting ready for rent, but I'm just not sure should I rent it or should I sell it.

Yeah, the previous one is being painted, getting ready for rent, but I'm just not sure should I rent it or should I sell it.

I only, I owe $150,000 on it. What's it worth? The market is worth $850,000. Okay.

I only, I owe $150,000 on it. What's it worth? The market is worth $850,000. Okay.

Only $150,000.

Only $150,000.

Considering the inflation and the rate going up, I was just thinking if keeping the house, the first house, if I keep it, next year this time is going to be worth $100,000 more.

Considering the inflation and the rate going up, I was just thinking if keeping the house, the first house, if I keep it, next year this time is going to be worth $100,000 more.

That's right, yes.

That's right, yes.

We just wanted to move to a better neighborhood and better school. Okay. So you didn't set out to be a landlord? No. No, I didn't. It turned out that way. So I was just thinking if it's a good investment, maybe to keep it for retirement age.

We just wanted to move to a better neighborhood and better school. Okay. So you didn't set out to be a landlord? No. No, I didn't. It turned out that way. So I was just thinking if it's a good investment, maybe to keep it for retirement age.

Probably not because I would buy a cheaper rental at that point.

Probably not because I would buy a cheaper rental at that point.

I could pay that off a lot faster.

I could pay that off a lot faster.

Hi. I'm glad that you're taking my call. I own two houses. One of them I just bought recently at $1.2 million dollars. I put down just 25% down and I mortgaged $900,000. Okay. Now, my first house, that is $850,000 worth, $150,000 remaining on the mortgage. The rate on the first house is 2.7%. That makes monthly payment of $2,000. Now, the question is,

Is it better to sell the first house and pay the equity toward the second house so that I can have lesser or smaller mortgage payment monthly? Or should I rent out the first house and pay the rent difference toward the mortgage of the second house? Because the rent difference is about $2,000 a month because it could rent out about $4,000. Okay. Keep going.

If I make $2,000 from the rent difference, that rent difference can go toward the mortgage of the second house and the rest I can pay through my income. Which one is a better investment pathway forward?

This is my only debt.

I make around $350,000 a year.

I live in the new one that I just bought.

Yeah, the previous one is being painted, getting ready for rent, but I'm just not sure should I rent it or should I sell it.

I only, I owe $150,000 on it. What's it worth? The market is worth $850,000. Okay.

Only $150,000.

Considering the inflation and the rate going up, I was just thinking if keeping the house, the first house, if I keep it, next year this time is going to be worth $100,000 more.

That's right, yes.

We just wanted to move to a better neighborhood and better school. Okay. So you didn't set out to be a landlord? No. No, I didn't. It turned out that way. So I was just thinking if it's a good investment, maybe to keep it for retirement age.

Probably not because I would buy a cheaper rental at that point.

I could pay that off a lot faster.