Should I sell or rent my townhouse?
I'm trying to decide if we should sell or rent our house in Baltimore.
-Lived in it for 5 years as primary residence. 3.75% interest rate. Currently paying $1550/month (principle, interest, insurance, taxes). Still owe $200k. Paid $220k for it in 2010.
-We think we could sell it for $280k. But we think we could rent it for $2k/month. If we rented it out, we think our total costs (management company, monthly payments, 3%/yr repair estimate, etc.) would average $2k in worst case scenarios and $1750 in good cases.
We're thinking about renting it out for a year while we move into an apartment. There are no homes we want to buy at this time so are hoping that we can look again in a year and potentially try to sell and buy a new one then. Is renting a bad idea in this case? The alternative is to just continue living here.