Sell vs Rent is a great question? What is the ROI you want on your current property. You will also, lose any exemptions you currently have if you convert to rental property. Also, maintenance and upkeep need to be figured into your choice. You can sell per "The Taxpayer Relief Act of 1997 eliminated the replacement residence rule. Under the new law, a homeowner could exclude up to $250,000 in profit from a home sale -- $500,000 for married couples filing jointly -- regardless of what they did with the money, and they could claim the exemption multiple times. To qualify, taxpayers must have been using the home as their principal residence for at least two years in the five-year period before the sale. So, effectively, the exclusion is available as often as every two years. The tax code also waives this two-years-out-of-five requirement for people in the military, the Foreign Service, the Peace Corps or U.S. intelligence agencies, who may be ordered to relocate repeatedly."
Read more: http://www.ehow.com/info_8793085_irs-onetime-exemption-selling-property.html#ixzz2t3btxIN6
Homepath is a process where you may buy a home in need of extensive repair. You need to be able to do repair yourself or have licensed contractor do. Many mortgage companies can help you with a 203k if you want to finance repair in with your mortgage. I read the other responses and they are all good and have great information. Contact a Realtor and have them help you in your decision making process. Thanks, RK Waldren