As a veteran in my 14th year of selling real estate I am getting asked this question more and more all the time these days. The answer is YES or NO.
Here are the considerations:
1. How much equity are you likely to lose from selling in a down market versus buying in a down market? You may lose $30-50K on your sale, but gain $70-100K in equity on your move up property, so it might be worth it to "take the hit" right now.
2. How much is your current payment? If it is too high to get a break even, or a slight positive cash flow if you rented it out, you should refinance it, and then rent it out.
3. Am I OK with a phone call or two to fix something if it breaks in my "rental house"? Or do I know someone handy that lives close by that doesn't charge an arm and a leg!
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