Rent and Wait, or Sell and Cringe?

· Carrying costs. You have already bought another home. Can you afford to pay for two houses? Keep in mind that to have a buffer between you and your tenant, you may want to hire a property manager. And the manager will want to get paid whether or not you have a tenant -- and whether or not the tenant is paying rent.

When you rent out a house, there will be months when it is vacant. But you still have to pay the mortgage and the real estate tax, and carry adequate insurance. Maintenance bills don't stop, either.

· Benefits of renting. Yes, there are also benefits to being a landlord. You can get tax deductions that are not available to homeowners, such as depreciation. Discuss the details with your financial adviser.

· Future of the market. Here, no one can assist you. Some "experts" predict that the real estate market will come back by the end of this year, while others say it may take two or three years. The crystal ball on my desk is cloudy.

But here's a suggestion: If you decide to rent out the house and you have a lot of equity, you may want to consider refinancing and pulling out some of that money (assuming you can find a lender in today's economy that is willing to make a cash-out loan). However, first calculate all the potential income and expenses involved with the rental. You do not want to pull out too much money, only to find that the new mortgage payments and other expenses will exceed the monthly rental income.

Another suggestion: Take your time and see if you can get a better offer for your house. Spring is usually a good time to try to sell. Perhaps you will get lucky and find a buyer who will come closer to your price.

In the final analysis, however, if you decide to sell, I am sure you will make a profit. It might not be as large as you would like, or as much as your neighbor got for a similar house two years ago, but it will still be a profit. Too many people want to forget that property values were going crazy in the past few years and are disappointed that they cannot sell at those same exorbitant prices. There's no room for that mind-set today.

Benny L. Kass is a Washington lawyer. For a free copy of the booklet "A Guide to Settlement on Your New Home," send a self-addressed stamped envelope to Benny L. Kass, 1050 17th St. NW, Suite 1100, Washington, D.C. 20036. Readers may also send questions to him at that address or contact him through his Web site, www.kmklawyers.com.