I currently live in a house that I own with my parents. 2 years ago I got a job which lets me work remotely,and since then I wanted to move out of state because this house is in an state with killer property taxes (currently paying $1000 a month). Right now we cannot sell this house (for some complicated reasons), so the only way I can move out is if we rent it out.
I also want to buy a house in the state which I move into. This house will cost around $200,000 and my down payment will be $50,000 (a good chunk of my savings). If I can save around $500 in less taxes and make around $500 in profit from my rental first house, then would this be a smart move? Assuming I stay in my new house for at least 10 years.
Would it offset the cost of my down payment, interest payments on the second mortgage, closing costs, moving, and the headache and risks of being a landlord?
In other words, would an extra $1000 in my pocket every month be worth buying a second home and the trouble of renting out the first?