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The loan on this property is a HELOC at prime minus 0.75% with a 3% floor. This is a variable rate. Currently it's at 3%. The reason I got a variable rate was because I didn't intend to keep the house long term. Market conditions make it very difficult, though. I am not very comfortable with keeping a HELOC for more than 3 years.

So if you rent, are you going to rent it for a maximum of 3 years? Or are you going to rent it out until the housing values recover? Because if you are going to try to hang on until housing values recover, you probably need to refinance it pretty soon into a fixed rate mortgage, since you are uncomfortable keeping the HELOC for more than 3 years.

If you are going to do this, you should then refigure your cash flow with a fully amortizing 30 year payment with an investment property rate.

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