I live in a Single-Family home with my family- I am planning to relocate. The current home in California has 30yrFixed/5.5. If I rent this home with current mortgage - it is almost 100% certain that we run into negative cash flow (incl Escrow... ). We are relocating to state of Washington - I would like to buy house there, it is an option we are pursuing seriously. I have presented my case to the current lender requesting his inputs.
With the Interest Rates at what they are I doubt there is a better product which will help us lower the monthly payments. So in all likelihood I will have to rent-out the current home and move to a rental in Seattle. Any comments and suggestions - please let me know. BTW, some one told me that there are cases where the lender may take interest in the property and will manage the property and I do not have to go to a property management. I will check with this with the lender. Nevertheless does anyone know anything about such case? Thanks again!

It will be interesting to learn the current lender's opinion. Meanwhile, isn't there a tax break that helps you, called 'depreciation', that will provide some benefit to you? I would check with my accountant.

Unless you can remain in the local area, I would advise against renting it.

There are so many issues, that require your presence to insure everything is as it should be.

Management companies are notorious for presenting you with a "statement of expenses" each month, in the place of a check for the full rental amount.

Deductions for a variety of things, that with you being so far away, would be helpless to verify.

Repairs to walls, doors, fences, appliances, just to name a few.

I would exhaust every other possible option before I went the long distance landlord route.

There is a provision in the tax law for real property transfers. Basically you can swap properties. That might be someothing for you to look into.