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No. of Recommendations: 3
Hmmm, in 10 years you plan on moving? How do you know the area won't change, your job won't change, or your tastes won't change? You're "locking" yourself in way too early IMHO. Here are some things for you to consider:

If you have the discipline and were to invest the profit of $100k and the $1100/mo you were spending to keep the house, assuming you only get 4% compounded per year (say an ING type account), you'd have over $300,000 for a down payment in 10 years.

If you keep the house you'll be paying approximately $85,000. I assume this is taking into account taxes you pay on the property? But that doesn't take into account maintenance costs which have to be factored in along the way (some percentage of your rental receipts 2-5% maybe?), as well as you may be wanting an overhaul of the house after having rented it for 10 years. New kitchen, new baths possibly. Renters don't usually care for the property as well as owners do. Also, vacancy may be an issue which would increase your costs of holding.

Don't see there being much in the way of appreciation for the next 10 years either, so I don't think you'll have to worry about prices getting away from you.

I'd probably take the money and run. There will likely be other houses that are just as nice when you are ready for it.

Good luck with the decision.
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