to rent out or to sell house

[Kelly R.]

I am moving and am trying to determine if its best to sell my house or rent it out and have a property management company manage it for a fee. I paid full market price for it four years ago so I don't have much equity in it. Its paid down to 95000, so there is about five thousand in equity. Its a strong rental area I just don't know if I should hang onto it. 

[Elias Camhi]

This will be a numbers game regardless of which way you go. If you sell, will you clear your mortgage and all closing costs associated with selling it? If you lease, you will need to have a rental comparison done and determine if that will cover your monthly mortgage payment, management fees, property taxes, HOA dues, maintenance costs and any vacancy on the property. This can all be handled by your property manager, but you need to make sure it will be free and clear. Whichever way gives you a more positive outcome, should be the choice you make.