Sell home for loss or rent it out

Sell Home for Loss or Rent it Out

3 years ago I purchased a townhome for me and my wife. Now, we have 2 kids and it’s getting really tight. We have the income to purchase a bigger home however this house is about 30k under what I purchased it for and even then nobody is buying it at that price.

I was given the idea to rent it out. The rent around me is $700 below my current mortgage. With a proper refinance, I need to throw in \~20k if not more to even be able to compete to break even.

I have the money to do this along with buying a new home. However, from a financial perspective I’m asking if this is a really stupid move, or kinda stupid because I know I should wait and deal with the house I have. But if I REALLY want to move, these are my options currently.

I’m assuming I can’t rent it out for a loss every month and lose less than what I would be losing on just selling it and maybe 1-3 years later I can sell it for more money.

I have the capital to hold through the storm but I’m not sure if that’s a good idea to even consider.

I’m asking for your thoughts

Thanks