<prompt> Human: This is a little more complicated than your typical real estate should I sell or rent question. Its a long read so strap in. SELL SCENARIOIn March 2013 I bought my current home for about 130,000 with a FHA loan. Its one story, two car garage, two bedrooms with a den than be converted easily, about 1,400 sq ft. I owe 118,000. Its currently worth 190-200k. If I am conservative with my estimate of 190k, my net equity is about 64k. I live in a hot market, and Im a Realtor, so my home should sell quickly and would pay less commission, and it might sell for more than 190k, but I prefer being conservative with my estimates. RENT SCENARIOMy mortgage on the home is about 830mo. I can rent out the home for 1,100-1,200mo. After I pay a property manager 100mo, and spend about 50mo on a home warranty. It will likely rent for 1,200mo, but for the sake of being conservative, I will say 1,100 thereby netting 120mo. At the moment I prefer to rent over sell. Although my monthly gains would be small, I am banking on the market going up in value approximately 8 a year for at least the next few years. Its not unrealistic to think my primary residence will be worth 215-230k in a few years. BUY NOW OR LATER: THE REAL DILEMMATo complicate matters a little more, Im buying my brother in laws home. He will sell it to me below market since hes not paying commissions, closing costs, etc. In order for me to buy his home now, I need to sell my home to use the FHA financing. I do not qualify for a conventional loan until November this year. Conventional financing allows me to own both homes simultaneously so I retain an investment property. He will rent his house to me for 1,200mo until I can buy with conventional. But then I would be netting 120 from my rental and paying out 1,200, in a way _losing_ 1,080mo for the next 7 months. If I dont buy or rent the home now, he will have to rent it out for 12 months to someone else. He will still sell me the home at the same agreed upon price whether I buy no or later this year. QUESTIONSTL;DRSo my main question is, is it worth me losing 1,080mo for 7 months to get into a second property now considering the market conditions? Is it worth losing a little money this year to gamble that both properties will appreciate in value? Or should I sell my primary residence and move on?Thanks in advance!Assistant: I dont see why you think you are losing 1080month.The way I calculate it, you are paying 830mth mortgage now. You will be paying 1,200 a month rent but collecting 120month cash from the rental of your current house.1,200-830-120 250 month that you would be paying over and above what you are paying now, not 1080 month.Paying 250 month for 7 months until November, when you can get the mortgage will cost you 1,750.Meanwhile, you think the current house will be going up in value by 8 per year. So, you think it will go up in value by 15,200 over the next year. If the new house is also going up in value by the same amount, the deal is looking to make you 30k over the next year.In that context, 1,750 of extra cost to make the deal happen is chump change.If you are a realtor, why do you need a property management company?I assume that this deal is aimed at making money through the property appreciation over the next 3 years.Remember, you will lose your primary residence capital gains exclusion if you have not lived in a house for 2 out of the last 5 years.To avoid capital gains tax, you will need to sell one of the two houses within 3 years.Or, you could keep both, but move between them and live in whichever one you are looking to sell for 2 years before you sell it.Good luck.Human: You make some excellent points. I calculated my rent income being 120mo after paying a property manager 100mo and a home warranty at 50mo. I dont want to manage the property myself. Id rather leave that to people who know more about it than I do and focus on sales and starting a family. Yes I plan on making money through appreciation of the market. I have lived in the home for the last 4 years so capital gains does not factor in.  <response>: It will factor in 3 years after you move out.In other words, you have less than 3 years in which you can rent it out before you will have to sell it if you want to avoid capital gains taxes.Unless you move back into it for over 2 years at some point before selling it. 