California E&S Insurance

I had a very similar situation 3 years ago. Wife and I moved to another state, I didn't want to give up my 2.625% rate home, so I chose to rent it out instead of selling it. Home would have sold for 525k, I had a 275k balance on it at the time, so \~250k in equity. The rental cash flows 800/mo, I earn \~450/mo in tax deductions, and \~550/mo of my payment is principal. So the rental earns me 21,600/year on 250k in equity (8.64%). Today it would sell for 525k as well, so I have earned no equity in 3 years. In hindsight, I wish I would have sold and invested the cash, as I would have done way better than 8.64% returns. Additionally, having the existing mortgage counted against our DTI when purchasing another home.

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