The wife and I are moving back to Texas after being out of state for over 10 years.

We still have several years left to pay on our house at a very low interest rate.

Given the current rate environment and the very limited supply and high valuations of properties where we are moving to, I would like to rent out our current home.

We can probably rent it out for 30% more than our mortgage but would want to employ a property manager to handle any maintenance issues and to make sure the property is being taking care of properly.

Of course, income tax issues are now an issue.

Questions:

1. What are current property management rates?
2. What percent profit, in everyone's opinion, is enough to have a property out of state?

8-10% Watch out for fees. Some of those guys will kill you with side fees.

30% is fine. I average about 33%.

Does that 30% include principal, interest, insurance, and taxes?

A couple of things to think about on the buy side of the new house in Texas:

You will of course need down payment funds from sources other then equity of the departing residence. If, for example, you can only out down 5% on the new house because you have not sold the departing property your financing cost on the new house will be higher. You really have to factor that into the "cost of renting".

And you will need to be able to qualify for the new mortgage WITH your PITI on your departing residence calculated into your debt to income ratio unless you already have a lease in place. The timing of renting your house before you even close on the new house can be tricky. If your debt to income does not need the lease then no issue.

Do you really want to have to file an income tax return/pay tax in the state you're leaving?