I plan to buy a second freehold property for RM400K. The monthly installments including maintenance fees is goes up to about RM2,500. My question is more on what I should do with my first property as I plan to stay at the second property.

I bought my first property 5 years ago for RM180K. Monthly installment around RM850 and maintenance fees is about RM180. Balance loan amount around RM150K. The property is leasehold.

I cannot afford to pay for both properties at the same time. What should I do with my first property?

1) Sell the first property? I think if I sell now it could fetch a price around RM400K. If I sell at RM400K, I think I made a good profit of RM250K. Should I pump this RM250K into my second property?

2) Rent out the first property? I think the rental should be around RM1,200 only so not going to help much unless I withdraw from EPF account 2 to service the loan. I have about RM100K in my account 2. Not enough to fully settle the loan yet but enough to service monthly installment.