PV
I've been in the same situation.
I would encourage you to talk with your CPA regarding the tax consequences not only while it's a rental, and then when you sell it.

There have been significant changes in the IRS rules for non-owner occupied investment property. The principles of appreciation and tax deductions are still valid. In the long term I strongly recommend investment property...buy and hold, not buy and flip.

I became an accidental investor, and at the time had not real clue what we were doing. Please feel free to contact me directly for specific questions.

I've written about this choice on my blog in the past. It's a complicated decision, and rather than rehash the entire thing, I'm offering a link to my blog. I'm not going to say this post covers everything you should consider in making this decision, but it should at least cover the heavy hitters.

Another possible aternative would be to have your husband see if the company would make up some or all of the amount of your loss on your home as part of the relocation package. We do several relocation listings each year and recently the sellers have all been in the same situation as you and your husband. Sometimes the company helps out and sometimes they don't. But it doesn't hurt to ask the company to do something. Good luck.

Rick Dobbles

Excellent question!

A few questions to ask yourself:
1. Do you want to or will you buy a home in Dallas? If so, you may find it difficult to buy another home unless you have at least 20% equity in your existing home. Consult a lender for more information.
2. If you rent the house, are you comfortable being a long distance landlord? If you turn the house into a rental, you should intently consider hiring a property management company. And consult your accountant regarding the tax consequences of having a rental property.
3. If you keep the house, to make up a loss of 25% in equity, it could take quite a long time for the market to rebound to be able to sell the house & not take a loss.

Hope this information helps.

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PAUL WELDEN
HomeSmart Real Estate

Great question!

How much does owning this home in AZ affect your purchasing power in Dallas?

Do you have equity in AZ you need to buy in Dallas?

Are you suited to be remote landlords?

Do you think you might return to AZ and want this home?

How long are you willing to wait for this market to recover?

You may want to ask yourself, which option are you most comfortable with? Not everyone is suited for being a long distance landlord. There is however the option of having a property management company oversee and handle the leasing for you.

An appropriate person to ask would be your accountant. Gather all the figures needed and evaluate which option will be suit you financially.

Good luck!