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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Since you own the property outright, I agree with others that this is not a good candidate for a rental home. Unless you have ties to the house and plan to move back to it at some point in the future.

1) If you sell it and buy the other house, you don't pay capital gains tax on the appreciation gain. This is a big deal.

2) Since you own the property outright, you can't deduct mortgage interest as a cost on your rental income, which you are taxed on.

3) All the people who are saying "just hire a property manager" don't realize that the 8-10% the property manager charges from the rent will further negate any advantage to having a rental house vs. investing in the market. [/quote]

And hiring a PM doesn't ensure you won't go 1-2 months without a tenant at times.  Also doesn't guarantee the tenant wont destroy the home beyond the deposit amount.

Most I know who have rented like this have regretted it.  Rarely do you even break even. It's a hassle and you'd be better off with the money in the stock marekt
[/quote]

My DH inherited a couple of modest SFHs, probably like the one you own. He rented them out for a few years but then sold because it was a PITA and putting the money in the market was more profitable.[/quote]

Yup!  Higher returns and no work required.  [/quote]

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