<prompt> Human: We bought a house and moved to a suburbanrural area last summer because it was close to childcare and my job. A yearish later, weve realized that were city people and want to go back. Bad news - we have very little equity in the house. We owe 260k on a 270k home. Wed probably have out of pocket costs in selling it. Plus, we might want to come back to it in 3-5 years if we have more kids. So were thinking about renting it out, but Ive never done anything like this before. Well still be very close, so we can keep an eye on it, stop in for maintenance issues, etc. Whats a factor that Im probably not thinking about? Thanks in advance.  <response>: A good rule of thumb: assume youll net 80 of a years rental income. Does this number cover a years worth of mortgage payments, taxes, insurance, and any other recurring fees gardening, condo association fees, Mello-Roos, etc? This will give you a fairly good idea whether youll be positive cash flow or negative.If youre in the US: the tax implications of being a landlord are great. You will be able to deduct mortgage interest, property taxes, insurance, gardening, and a bunch of other expenses on your Schedule E. The most remarkable of these deductions is that you can depreciate the house itself not the land but the house and other structures on it over a 27.5 year span, which makes it very possible to hit a sweet spot where the rental property generates negative taxable income on paper reducing your taxes while actually delivering positive cash flow. Hire an experienced tax preparer for the first couple years. You can write that off. Again, Im assuming youre in the US: get the Nolo Press Landlords Guide, and if youre in California, get the California-specific edition. It has all the forms you need and does a great job of enumerating your rights and responsibilities as well as those of your tenant. More importantly it tells you all the things you need to do to stay within the law. Best 30 you will ever spend. Thats deductible too.Lastly, screen your tenants very, very well. Do not accept an incomplete application. Call at least two landlords prior to the current one. Youd be surprised what you learn about some people. Source: I own two rental properties in San Diego. 