Now there's a good idea. Of course you could also subdivide to get the extra acreage for your property then rent out the house to generate additional monthly income... In virtually every instance I've encountered (unless the home is completely trashed, and even then...) the rent value of the property should end up being quite a bit higher than the monthly mortgage payments (PITI). Even with the costs associated with renting (repairs/upkeep/record keeping/etc.) you should be in the black every month, but if you choose to depreciate, you'll be in the red for tax purposes. I personally would not do this (depreciation) - speaking from past experience, as when you eventually sell the property you have a lot more taxable profit. But no matter how you look at it, the renter is paying off the mortgage for you. After a couple of years, you should be able to sell it at a slight profit... enough to cover the REA commission and you'll have added the extra acres to your homestead basically free of charge or with a small profit.