Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Should I sell a 2nd home, or rent it out?
Option A - you sell the house and then use the money to pay off a portion of your second mortgage. The return on that investment is 5.5% a year, or $1925 net. Option B - you rent it out, that will bring  you $5220 (435 x 12), more than 2.5 times option A. That's not counting any money going towards the principal of the loan. Given that you'll be using a property management company, you can be fairly certain that there won't be any unexpected expenses (credit check, security deposit should take care of that) Option C - you invest the money somewhere else. You'll have to get 15% return in order to beat option B. I don't think that's sustainable.  You should talk to a CPA about the tax implications, but I'm fairly certain that you'll do better tax wise to rent it out, since you can use depreciation to lower your tax bill.  Finally, where do you think real estate prices will be in 4 years? If you think they'll increase that's another reason to hold onto the property and rent it.  Finally finally, if you plan to rent it out long term (over 4 years), it will be a good idea to refinance and lock the current interest rate.