Thats a question that may come to your mind at some point in the home sale process. At which point is hard to tell, but almost everytime someone tries to sell their home in this market this will come up. So what is the answer?
Well, as a professional property manager I tell people that maybe its a good idea. Why let all the investors offer you way lower than market value and sell your home when you don't need to take that big loss. Why not rent it out, cover your house payment for a year or two, and then sell it when the market comes back a bit?
Is it scary to put a tenant in your home? Definately. Will they scratch your fresh painted walls? Yep. Will their kids spill stuff in your carpet? Most definately? Will their dog dig holes in your yard? More than likely. Will I make an profit renting it out? Probably not.
Geez Dennis, you make it sound so appealing! Sorry, but its not appealing. What's appealing is when you bought your home with the plan that in 5-7 years you would sell for a large profit. Well, that may still be the case but not likely this year. Now we survive and keep from losing, and isn't that the best strategy today? Tread water until the tide comes back in?
Some advantages to renting are that if you break even you can last another year or two and not take a huge loss on your home. And did you know that if you rent your home you can claim a whole bunch of new deductions, like depreciation? With those deductions, you might even get a bit of a refund on your taxes next year. Those dinged up walls? Paint them, its not so bad. Did I mention painting walls in a rental unit is tax deductible? Hmmm... maybe this will work out.
Curse me today, you'll thank me tommorrow!
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