Renting out vs. Selling Advice

[Matt J.]

I've been reading and learning a bit here, but never posted. Hope you can offer some advice on what to do--to rent out my house or sell it.

I'm expecting to move out of state (Utah) in the next 3-4 months, and don't think I will be returning anytime soon. I own a single family home, two bed/one bath that I bought in 2006 for $205,000. The mortgage is down to 151,000 at 5% on a 30 year. Its in a good neighborhood close to downtown, could probably get about 1100/mo for rent. Currently paying $990 for mortgage, tax, and insurance. No HOA or any other major fees. Just appraised at $175,000, which seems about right.

Market seems to be going up here, in the last few months nice houses in the area are selling quickly. No foreclosures in the area. Rental market is pretty strong.

So do I take a $30k loss and sell, or hang a couple years on until the market returns? If I do keep it, I can refinance now down to 3.625.

I've heard about the 50% rule...so
1100 (rent)/2 = 550
550-847(p+i) = -297 (or with at 3.625% loan 550-770(p+i+pmi) = - 220)

Would indicate I should just sell from a business standpoint...is this about right? The rule seems very conservative.