It depends upon the rental market in your area. I would recommend that you begin working with a local realtor. Send an email to me, if you need a referral.
I suggest talking with a broker that works in your area. In most of So Cal we are seeing a significant drop in inventory levels, which means that although the overall economy is keeping prices down, homes that are priced right will sell.
FInd out what the fair market value is for your home and ask the broker to run the numbers for you. In most cases if you purchased your home in the past year, prices have actually started trending upward, so you might be able to sell for about what you paid.
OTOH, keeping it as a rental might be a good idea. If you want to look into renting, check your mortgage contract for non-owner occupancy. ALso, check with your CPA regarding the impact on your tax situation, both when it is a rental and at the time you sell. We rented our house when we couldn't sell for a loss and kept it 18 years as a rental and made a lot of money, so it's not the end of the world.
John & Sarena Villaescusa
Keller Williams Realty
We manage properties in the Santa Clarita Valley. If you want to discuss your options in detail, let me know.
President & Broker
United America Realty
U.A. Property Management
I'm sorry you're going through this. It's not fun to figure out these kinds of things, but I think you're doing the right thing by figuring our what is in your best interest now rather than later. Everything is boing to depend on your own personal financial situation. I'm not a financial expert, but I would suggest you need to find out what you can get for rent and see if that's enough to get you through every month. If you're negative, can you cover the difference? And how long will it take for you to catch up the negative? Or is it better to sell it now and get it over with? Or maybe get yourself into a better investment property? Lot's to think about. Only you can figure out what numbers you can live with what makes the best sense for you.
Is this your primary or investment property? If it's your primary, where would you live to rent this out and how much would your rent cost? It's all a number game. I wish you luck and I know you'll get through this. Good luck!