Not an investor!

[Georgia Acres]

I'm not an investor. I'm just a homeowner who has been on the market for 4 months with no sale. It's time to move with my job and don't want to have 2 house payments all winter. So everyone says renting my newly updated home is a huge mistake.... I'm here to learn and try to weigh my options!

[Jeff Copeland]

@Georgia Acres - There's no particular reason why renting your home would be a huge mistake.

If your tenants are paying your mortgage and expenses (and then some), while your home is appreciating and your debt is being paid down, what's the problem? How is that a huge mistake?

To put it bluntly, don't listen to "everyone" - they aren't familiar with your finances and they almost certainly aren't taking the long term view. 

How much will your house rent for in 2036? Where would you be in 20 years once your house is paid off (by your tenants) and you own it free and clear? You'll have an appreciating asset that generates X amount of net income every month, and if you choose to sell it then it may be worth double what it is now...how is that a bad thing or a huge mistake?

I assume "everyone" is telling you not to rent it because tenants won't take care of all of your recently updated fixtures and finishes like you would. That may be true. Budget for it (called capital expenditures or capex) and make sure your rent covers it (ideally, the upgrades would justify higher rent anyway). 

For example: Think you'll have to replace the roof or the floors ten years from now? Estimate the cost, divide it by 120 (as in 10 years worth of rent payments), and make sure the rent covers it. Problem solved. 

What is also true, and possibly harder to come to terms with, is you have to remove emotion from the picture. This will no longer be your family home. It will be a rental property and an asset on your balance sheet. You will be a real estate investor (like it or not :-) ), and will have to make decisions like one - based on cold-hearted numbers, and numbers don't lie if you use them correctly. 

I'd suggest sitting down with an experienced buy and hold investor and/or property manager and running the numbers on your house. What kind of cash flow will it generate? What kind of cap rate will it produce? Learn how to analyze these numbers and make an informed decision, rather than listening to "everyone's" advice.

Hope that helps! Good luck!