To Sell or to Rent, That is the Question

[Kelly McMahon]

Im no expert on the economy, or investing, and especially not the real estate market but I do know how to balance a budget and jump on bigger and better opportunities. Our current house is too small and not working for our situation any more. We need a bigger home, but do we rent or sell this home?

First of all, I know nothing about being a landlord, or hiring a property manager, but the little advice I have gotten on the subject tells me I'd rather do the work myself. According to the numbers my real estate agent gave me and what shows on Zillow, our house is worth about 25K less than we owe. Now that doesnt mean we cant sell it for more. That number is simply taking into account the square footage and number of bedrooms right?

We have a lot of attractive features I think would draw people to this home, but if we sell we run the risk of losing a lot of money. If we rent, we run the risk of someone destroying our home, making a ton more work for ourselves, and losing a lot of money. But we could also sell for what we owe or rent to lovely tenants and actually make a little money.

So how do you decide?

On a related note, another question is how does it work when you cant afford two mortgages, do you find someone to rent/buy then try like hell to find that perfect house and move out fast? Or do you find a small rental in between? Neither situation sounds that great.

Any help/advice as we enter into this journey would be much appreciated!!