Moving out, should I turn my primary residence into a rental?

[Nabeel Qureshi]

3 BR/2.5 BA condo.

The cap rate and cash on cash return I am calculating is negative. Using a vacancy of 8.3%. My loan to value is 73%. I am being very conservative with my numbers (thinking of difficult scenarios). Moving out of state and will be purchasing a new primary residence there. Appreciation in this market is probably around 6%.

If I sell, it’ll be after owning the condo for 1.5 years.

Very new to this- hope my question makes sense.

[Will Fraser]

Hi @Nabeel Qureshi, welcome to the BiggerPockets forums!

Assuming you have a 30-year fixed-rate mortgage at a sub 4% interest rate (from 1.5 years ago), If it were me I would keep the property and lease it out for the long-term future, unless I needed the money now.  

Ideally you could see some nice cashflow with the condo and still participate in a relatively high appreciation rate.  Never a bad combo!