Prior to moving to our current location, my wife and I lived in a one bedroom condo. We continue to own the condo, owing about $80k on it. We get enough rental income that we make a profit after condo fees, management fees, and mortgage interest.
Now we own a larger home and we are looking to move. A big part of me is tempted to become a landlord again. However, we owe substantially more on the property (like $370k). We are not under water. We could sell and either break even or make a little money. However, selling seems expensive after you take into account 6% realtor fees, potentially paying for someones closing costs, etc.
So I'm tempted to rent it out, again. I'd be the landlord of two properties. However, where we will be moving I'd like to buy a home eventually. Will owning these two properties with mortgages on them interfere with my ability to get financing for another home? Would I be seen as overextended? Or would the fact that rent is covering these mortgages mean I could still get financing on a third home?
Also am I just over exposing myself and my family to excess risk? A little condo is one thing, a home where we owe twice as much as our yearly income is another.