How long do you want to wait? Opinions are that the market will not turn for 4-5 years at this point. What condition is the house in? Will you have to constantly put money in to keep it up to par for your tenants? Do you have a years' rent in the bank in case your tenants default and you have to evict? Will you have to supplement the rent with your own money, or will the rent cover the mortgage? Will you qualify for a new mortgage without selling your current home? There's a lot to consider. (The tax write-offs are good!) I own several properties, have seen through many of the pitfalls of being a landlord and would be happy to answer any questions you might have. You can reach me through my website or Trulia.

Since you're already familiar with the responsibility of being a landlord, and if you don't need proceeds from the sale to purchase, I would wait to sell. That being said, if you plan on relocating out of the area, I would be very careful in choosing tenants. You'll want someone to take very good care of your property.

Another thing to consider is that since the property has tenants, it might be more attractive to a potential buyer. That could swing the other way if there is a lease on the garage apartment.

Laura Giannotta
Keller Williams Atlantic Shore

Hi Connie. If you are able to get by financially by renting your home out than that is probably your best option. There are also many people out there who are trying to do rent with option to purchase and not many owners who are financially capable of offering this so that's something you should consider. If you'd like to get cash for your next home purchase, than you should sell. I'd advise you to discuss financials with a mortgage representative and go from there.
You can also call some local realtors to give you a comparative market analysis of what your home's worth and see how that number works for you. Just remember, if you sell low, you also get to buy low. If you wait to sell high, than you also buy high. Best of luck!

Jillian Mason-Sales Associate
Direct: 732-586-5488
E-Mail: jillian@jillianmason.com