<prompt> Human: My parents are in their late 50s, and recently moved out of California for a much higher paying job. They are hoping to move back to California in 8 years.The house is currently worth 1.2 million, and they bought it for 420k, and the current mortgage is around 400k at 2.8 because of other loans and consolidation. Since the house was bought 16 years ago, the average annual appreciation rate over that period is around 6.4. Their current monthly mortgage payments are 1700month, with 600 going towards the principle. 5 ARM mortgage.Because of the extremely good school district, they can get 3400month in rent, and the tenants would be a single family with two parents and two kids of school age.They are most worried that when they move back, the entire area will be too expensive for them. Im been telling them that selling is easier and smarter with the 500k capital gains exception and fairly conservative returns on their investment if they sold the house.Am I wrong in thinking that selling the house now and investing it would be much more beneficial than renting for 8 years and moving back?  <response>: A number I have always seen is charging 1 of a homes value for rent.At a value of 1.2 mill, the 3400 they are getting is 0.28, far lower than what I have seen recommended.However, the ease of mind of knowing that they own the house and will have made money on it for the next 8 years is pretty big. 