Sell house to rent? (taxes, increase, mortgage, balance)

[joe moving]

We are considering selling our house to rent...

What should we consider financially aside from:

mortgage vs rent
maintenance fees
insurance fees
utilties (higher on house)
gains earned on cash from selling house vs. gains on equity in home/home value increase

Overall i am having a hard time doing the numbers on the home value increase since our home has only dropped in value since we bought it. Hard to assume it will go up 2-3% with the past few years.

[piyf]

Vague question is vague.

[joe moving]

Are there other factors I am missing which might influence the financial impact of rent vs buy.

[TurtleCreek80]

Originally Posted by danieloneil01

Vague question is vague.

Agreed. I had to read it severa times before I realized OP was asking whether he should "Sell his house AND rent" not that he had a house for sale for rent

OP- need to know much much more to answer. What is your mortgage balance & monthly payment? How many years left? What is the current market value of your home? When did you buy and how much has the value dropped? How much is your annual property tax/ insurance/ HOA?

How much is rent in your area?

Are you employed? Unemployed? Cash strapped?

You are considering the right things, if that's all you wanted to know. But if you are looking for guidance/answers, we need more info.

[TurtleCreek80]

Originally Posted by joe moving

Are there other factors I am missing which might influence the financial impact of rent vs buy.

Yes - one big one. Do you take the standard deduction or itemize? If you itemize, you need to run your tax numbers without the mortgage deduction & property tax deductions. If your home was pricey and/or you live in a high property tax state, you could get hit with a big tax bill you're not expecting if you choose to rent.

At 28% tax rate, $10,000 of itemized deductions (beyond the standard deduction rate) saves you $2,800 on taxes. That's roughly the deductions one would take on a $150-170k home with 2-3% annual property taxes. Without those deductions, your tax bill will rise by $2800 next year.