Your tax effected payment calculations are misstated; Only the interest and property taxes are deductible. Further, the property tax deductions won’t shield you from The AMT. You do not get a tax deduction for principal, insurance, HOA, and, under most circumstances, MR tax.
I purchased my first home in 2009 and turned it into a rental last October after making a “move up” purchase into a undervalued “fixer” property.. After crunching the numbers, I’ve realized that I have too much equity in my rental at current prices to justify holding it. I’ll be selling later this year to “lock in” my gains tax free (primary residence exclusion). However, I do hate to lose the leverage at a 3.5% interest rate….
To summarize- I think the market has gotten ahead of itself and it’s a good time to sell (assuming you don’t need a place to live).
