Should I sell my property in Hawaii or rent in out?

Easy question, hard answer

Your question sets some kind of record - there is so much more missing information than there is present that I don't even know where to start.

Relative housing values would be a good place to start, then cost of living, working or retired, lifestyle, tax position, then, sheesh, there's a lot more.

I really think you need to analyze this a little better up front before asking advice. Or maybe just say, "the heck with it, let's go". I did that 14 years ago and haven't looked back.

Selling versus refinancing

There are three possible avenues for dealing with your move to Nevada.

First would be selling your Hawaiian home outright. Single individuals are able to defer the qualified gain on a home up to 250,000.00 for single individuals; 500,000.00 for married couples.

To qualify each individual must have lived in the home for two of the last five years as their principle residence. There is a reduced exclusion if they don't qualify for the full exclusion but moved for a new job. Moves for health reasons, change in family situation, health are some of the qualifying reasons to receive an exclusion.----Next would be to rent the house out. This is presents the risk the tenant would be a nightmare. There are hurdles in dealing with rental problems even with a good tenant when you are thousands of miles removed from the property. Except for the business deductions taken the property might qualify for the sale exclusion if you change your mind and later sell. This option is a valid alternative if you feel you might return to Hawaii at a later date.----Finally, letting a relative or close friend live in the home as a caretaker, only paying for minor upkeep and taxes as a not for profit rental might be an attractive alternative to selling or renting it out.----I don't recommend taking out a home equity loan on the Hawaiian home unless you can't qualify for a loan in Nevada. The interest rate would be much higher than a first mortgage and could complicate a future sale of the Hawaiian home.----The final alternative would be to rent in Nevada, since I hear there is a glut of properties on the market. There is nothing like the feeling you get when you find out you are upside down on a home loan by thousands of dollars.

Good luck. Enjoy the scenery.

Lifestyle Issue

Assuming you mean you currently are living and working in Hawaii, what are your long term plans? If you are "certain" that you will live in Nevada for 5 years or more, and will never return to Hawaii, sell the place and buy something in Nevada. However, it is unlikely that you can be so certain at this time, so I suggest you rent out the Hawaii property, and rent a place to live in Nevada. You have 3 years to make a decision about selling the Hawaii property, before you lose the "Sale of Main Home" exemption.