Thinking of renting my personal home once we move

[Drew Brock]

Hello everyone,

I am trying to figure out if it make sense to rent my home once we move.  I got a 0 down USDA loan.  We have been in the house for 3.5 years so we do not have much equity.  I was thinking it would not make sense if we sell in a year or so because by the time I pay closing I will not be walking away with much money.  I figured if I could rent this property and cash flow a little, it would be better than selling and making hardly anything.  Below are the numbers.  I don't think the 50% rule gives a fair estimate as I just replaced the AC a year ago and the roof has a while until its lifespan is over.  Those seem to be the big hitters.  The house is in a nice neighborhood close to great schools. House was built in 2003 1600sq ft 3bedroom 2 bath.  This would be my first rental btw.

Thanks for the help.

Purchase price	$160,000.00	Current MV 163000
Down payment	$0
Closing cost	$3,500.00	(rolled into mortgage)
Total Mortgage	$163,500.00	3.25%
Mortgage balance	$153,000.00	Approx 10K inequity
Rent	$1,250
Monthly mortgage payment	$705.00
Taxes monthly	$50.00
Insurance monthly	$150.00
Vacancy	8%	$100	Area normally has houses vancant for 2 weeks or less
Operating expenses	10%	$125
Cash flow	$120.00
Using 50% rule
Rent	1250
Expenses	625
Mortgage	705
Cash flow	-80