Sell or Rent

[Amer Mallah]

I just moved into a new home and was debating renting or selling the home I just moved out of. 

I have $41k in equity in a home I think I can sell for $319k. My loan is at 3.125%, this puts my PITI at around $1100. Most of that is deductible, and in my bracket that is around $300 in deductions per month, so my cost is $800/month.

Looking around my neighborhood, it seems like I could get $2k/month in rent. If I estimate 25% of rent for CapEx+vacancies+PM+repairs, then that leaves $1500/month, for a net profit of $700/month.

Selling after let's say 6% of realtor's fees would put me at $21k in net cash

The math says that the break even point would be ~2.5 years (I guess I am assuming that interest in re-investing the proceeds from the sale would equal the appreciation of the property + additional revenue from rent increases)

Since I already own it, I have no DP or closing costs and 2.5 years seems like a short amount of time. 

It seems like renting makes much better financial sense. However, being a newbie, I feel like I've left out something or am not considering something obvious.. possibly tax related? My math is wrong? I am being too optimistic with my projections? Any advice would be appreciated. Thank you!