Rent or Sell? Does 2% or 50% rule matter in all markets?

[Jerry Gates]

Our property does not fit into 50% or the 2% rules; but I am still in a dilemma of weather to rent it out or sell the home. Any wisdom in the matter is really appreciated.

Here are the details:

• Market: Seattle area
• Mortgage is at 62% LTV @ 3.25/30 years and in year two.
• Rent: 0.6% Purchase price
• If we sell it now, we would make about 30K on top of down payment amount after covering the mortgage, commissions, closing.

Our home is in a very good rental market and I expect minimal vacancy rate for several years. Its a newer home (Built in 2009-2010), so I do not expect big maintenance expenses for some years either. We are currently managing the property ourselves. Rent leaves us with about 400/month after covering mortgage, taxes, insurance and HOA. Should we continue renting it and consider the equity+appreciation in cash flow?

Does the 50% or 2% rule matter in high priced markets like Seattle/SFO?

Thanks,

Jerry