Rent or Sell

[Josh Jacobsen]

I've just received a job offer out of state (a return to my roots). I've been advised by my mortgage broker that I would need 2 years in my new job before he would give me a loan to buy in that market. With my current house I have some equity. Would you rather cash out, and sit tight for two years? Or rent to somebody under a two year contract and manage your "rental" from out of state?and then sell?

[Jon Klaus]

Originally posted by @Josh Jacobsen:

My house is worth near $325k. I owe $240k, and could legitimately get $24-2600 per month in rent. My monthly payment is $1753.
Also, my work would move from retail to construction.

I think I'd be inclined to sell it. $325k homes don't make great rentals. Yes, $2500/mo is good, but you'd have an expensive rehab if your tenants were hard on the house. Like Matt says, if you sell, your gain would likely be tax free.

I rented my own home with similar values to yours for two years after I moved. I would have been better off selling right after I moved.