I live in Atlanta and want to move out of state. I have 2 homes here; one is a rental home that I'm keeping. The other is my own home that I'm considering selling or renting. I'm leaning towards renting it.

I have lived in my own home for 30 years. There are pros and cons to selling it or keeping it as a rental.

The bad part is that the house was built in the early 70's and was built with swiss cheese (ie, not built well). It's a 3/2/2, only 1800 sf, built on a slab. I've already had a pinhole leak in the copper pipes under the slab but most of the pipes go up into the attic from there and I've had one pinhole leak in the attic, plus a pipe burst with a recent freeze (first time in over 30 years) where water was pouring down from the ceiling. Who knows when the next pinhole leak will happen and if you have one with a renter here, they're not as forgiving or as understanding when you have to cut up some of the slab or take out the entire ceiling of a bathroom. It's also VERY difficult to heat (but not to cool) due to its unique layout, but the winters are pretty short in Atlanta.

The good part is that I've always liked the unique layout of the house. It's in a good area of town and just 1 mile away from a Walmart and other good big box stores.

If I sell it....... I'd be right at about the $250,000 profit without having to pay capital gains taxes on it. I could sell the house and not worry anymore about all its quirks or repairs needed. I could simply take the money, buy another home with the money, move, and be done.

If I rent it....... A) Though if I sold it I'd have the cash to go buy another house, I wouldn't have any income. The house is paid off and this would rent for about $1,800/mo. I could buy another house from money in my savings though it wouldn't be as easy without all the additional cash from selling this one. B) I've done a ton of work on the house over the years and feel if I sell, that I'd be getting nothing for my efforts. At least if I rent it, then I'm getting monthly income from all my past efforts; that it was all worthwhile. C) If I ever decide to move back to Atlanta, I could come back to this house and pick up where I left off, in an area with friends and businesses that I'm familiar with. D) if I keep the house as a rental beyond 5 years, I would lose the $250,000 capital gains tax exclusion, since you have to live in the house for 2 of the last 5 years. E) Even if I kept the house and came back in 10 years and lived here for 2 more years, the price of the house will likely go up over the years and I will exceed the $250,000 exemption.

What angles haven't I thought of? What else is there to consider?

Atlanta, Georgia

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