Rent out for a negative cash flow vs sell house at a gain?

[Minka Sha]

Which option would you pick, and WHY?? Also, if you can think of Option C, you are a rock-star! :)

So, condo is 2 BR, 2 BA in North Pacific Beach area in San Diego, CA. Great location, walkable to the beach. I bought with only 5% down, and my monthly payment (principal, insurance, taxes) $2700/month + HOA is an additional $400

Option A. Keep as a rental, probably rent for $2700-$2800/month, so a negative flow of $400-$500/month

Option B. Sell it now, net gain about $40-$60K after taxes, commissions, listing price, etc

[Dave Foster]

@Minka Sha

Option C - Stay in the house and get a roommate to share some of the payment until you have lived there for 2 years.  Then sell and take the $40K tax free using the sec 121 primary residence exclusion.

for bonus points, Air BNB it for weekends at the beach. Have friend you can stay with for those occasional weekends (HOA willing of course). But keep it as your residence per option C.

Do I win? :)