My wages are eaten up buy child care, bills for 2 properties and basics like food and gas for the car. I often think about BIG things that could go wrong with either property. At least the rental is rented at the moment with someone that has steady income.
Ok - so the math question is, what is the mortgage (PITI) minus the rental income, compared to what rent would be for you if you move?
Also - what would PITI minus rental income from the main house be if you lived in the small rental? Compared to rent in the area?
And yes, you're right to be concerned about the costs of repairs etc. If the numbers don't work in your favor there will be no cushion for emergencies (like the furnace repair I had last week and the pinhole leak in a pipe this week on my less that 30 year old house). If you sell and split the equity at least you will have a small nest egg.
