Rental Rate Calculation

[Justin Pineiro]

I have a question regarding calculating a rental rate.  I have found that general rule of thumb per SmartAssets.com is 0.8% to 1.1% of the just market value (JMV).  The property JMV is $135,892. Making the rent range from $905.95 per month to $1494.91.  Zillow gives me a rental estimate of $1380.  So the numbers seem accurate.  

However, this is the problem I have discovered. The rental rate is lower than the monthly cost of living here. Looking at the property history the mortgage was refinanced in 2012 at $134,000 for 15 years. I don't know the interest rate, but I do know that the monthly payment is about $1,100 per month and the HOA is $480 per month. Total is $1,580 per month. You can see where my dilemma lays now.

At most I can charge, $1,495 a month and the monthly cost of mortgage and HOA is $1,580. I believe best course of action here is to sell the home to an LLC for the amount owed and finance the home under the LLC with a 15 or 30 year mortgage. Can anyone help me and provide a little insight?

I truly appreciate it.