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[quote=Anonymous][quote=Anonymous] I am in the same situation as the OP, but I am in VA.  We did the calculation and decided not to rent it out.   Here's reason.   Let's say the house is worth $350K and rental income is  $2,000 per month, after expense (property taxes, insurance, HOA, repair, etc), you get about $18,000 per year (you may not get this much if required more repair throughout the year), then the return of investment is about 5%.  Yes, I know the house can appreciate over time and tax deduction of the depreciation value of the house.  Yes, the house can lose value as well (as in 2008 housing bubble) and yes, [b]you will pay tax when you sale your house [/b]in the future because of the depreciation of the tax you take over the years.[/quote]

BINGO - If you convert your home into a rental, then you have to pay income tax on all that gain.  Say you earned 200K in equity, that's very roughly $50,000 in tax.  PLUS, you have to claim the rental income as taxable income, and you cannot use the whole mortgage payment as a write off - only the mortgage interest.  I say sell.  Protect your gains from tax.  You can always buy another property to have as an investment.[/quote]

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