Rent or Sell our current home?
Quick background: We purchased our first home in 10/2010 as a newly married couple with a FHA loan and as little down as possible. We paid $93,000 and financed $91,764 for the home. The home is a 4/2 with two kitchens, in essence a 2/1 with a kitchen on each floor. However, we do not use it as an in law suite or a rental, it has never been an official rental, nor has it been metered for two units. Within a year or two, my wife and I are looking to move. Currently, we owe approximately $85,000 and if we sold right now, minus selling costs, I estimate we would be pretty close to breaking even with the potential to lose $1,000-$2,000.
I've considered keeping the home as my first rental property given the initial buying costs, guarantee of selling costs, and potential to lose money on the sale. However, the numbers do not look very promising. The only "give" I see within the numbers is I did included 10% for management and $500 for lawn care. In truth, I would manage the property myself and mow the small lawn. I also calculated the rent at $1,100 a month based on a quick comparison search on Craigslist. If any Rochester folks care to comment on this estimate I'd appreciate it, the home is located at 115 Renouf Drive, Rochester, NY 14624 (In Gates). Onto the ugly numbers!
Please note, this is my first time setting up a Property Cash Flow Analyzer, so if I'm off please tell me.
What would you do? Keep it with the negative cash flow or sell it off at a very slight loss just to be done with it?
Thanks