Rent or Sell - What Considerations to Make

[Will Kanewske]

Hello, 

I have been stressing out and anguishing over whether to sell or lease my first home. Hoping some experienced folks can provide some insights!

My wife and I have lived in a condominium for the last 10 years. We bought the property for 155K, now worth 360K and could probably rent for $2200 - $2500. Our place is small and with a growing family, we can no longer live at this location. It is only 2 bedrooms, 1000 square feet, and has a long commute to my latest job. For now we have moved out and rented at a bigger place while we rehab the property and make some additional improvements that is also closer to my work. My struggle is trying to determine whether to sell or lease the property. On one hand, cashing out of this property and purchasing a nice home for my family is extremely appealing as I could put a lot down making our house payment much more manageable with larger interest rates. On the other hand, we had always planned on renting this property and by selling I feel as though I am quitting the game just as it was about to start. 

The monthly financials look like this:

Principal / Interest: 886

Property Tax: 600

HOA: 350

Total Cost: 1836.

Mortgage is on a 15 year loan at 3.5 percent and it will be paid off in another 5 years. 

Am I crazy for wanting to sell this now? I've never been a landlord and perhaps some of the worry is just the hassle of what will be required. I also worry that since it is in an HOA, there is a lot less control over certain matters and special assessments could certainly be required in the future.