Taking The Plunge, Just Need A Good Push!
I am a lurker and finally I think I have an opportunity. We recently relocated and our primary is listed. First question, can I break my lisiting contract with my agent to market the home as L/O? Second question, I am just not sure if the market is truly there (Memphis, TN) for people to rent a 4 BR 2.5 BA for $1500. I am scared it will still sit inactive and we will pay mortgage and rent that much longer. I am thinking $7,000 Option Fee, $1500 monthly and Sales price $230,000. Third, my idea is to refi our equity out of the house and get an interest only 5/1 loan. Is this a good plan for a newbie to REI? 
Ligem,
Thanks for the reply. I will definitely wait the contract out, it was only for 3 months not the 6 he was urging and that time is almost up. I did research the market and the rents are comparable to what others are asking, I just can't grasp an understanding as to how people who can pay that amount to rent would not buy. I guess I won't know for sure until I try, but that first timer fear is trying to persuade me into inaction and I know from the boards that ACTION a is the first step.
Lots of people pay high rent could buy they just don't.
Just found a tennent who moved from IL lived in the same rental for 18 yrs. Talk about an owner's dream tenant.
That would be a great tenant, never excercise the option and just stay in the house forever with no lates. Does that happen ever with L/O? If they do not exercise the option then the unit is just a rental unit with above market rent.
When searching for a property management company to manage the L/O what are examples of good terms. One I have spoken with said he takes 50% of the option money and 5% of the monthly rent. Is that typical?