To sell and buy another, or to rent it out?

[Heidi Kenefick]

Hey all, Need some advice on whether to sell my home or rent it out. I’m moving in out of state in 6 months, and so I have the option of renting out my house when I move or just sell it and use any money made to buy a duplex or triplex in CT. I bought my house for 0 money down (actually got back 1500 at close) using a physicians loan. I took an ARM loan with a fixed rate for the first 7 years. I paid 136,000 for it, and have about 11 thousand in equity in it. The house has appreciated to $143,000 (according to Zillow) however the same exact new construction houses on my street go for 157,000. So I may be able to sell it for closer to 150k. So I think after realtor fees I may be able to net $19k if I sell it. I have been house hacking it for the past two years and making 12k/year. Houses in my neighborhood rent for between 1,100 and 1,300/month, my mortgage is $700/month and I would have to pay a PM as well. It’s a new house built in 2014 so maintenance costs are minimal. So I could rent it out for 3 years and sell it before my interest rate rises, or I could sell it in 6 months when I move and use the money from the sale as a down payment on a duplex or triplex in Connecticut. I cannot get another 0 Money down physician loan unless I have 20% equity in my house, and I am a long way off from that right now. So i would have to use traditional financing which I’m not even sure if that can be used for a multifamily home. I also cannot use the physician loan for a rental, which kinda sucks because 0 down without PMI is a great deal. Any advice on the pros vs cons of selling my primary residence vs renting it out? Does the house depreciate more if it is a rental? Would I pay higher taxes if i sell it as a rental vs primary residence? What would ya’ll do in this situation?