A car and what to do with the house

First: Gary's mom has offered to loan us money to buy a second car. She has been able to save up a bit for when she replaces her car. She knows we can't pay her back until our house sells. So we've been looking for a Subaru Outback wagon. We've been looking on line, and yesterday and today we went to look at some. Nothing yesterday, but today we found the one. We made a down payment, and Friday we'll go make the final payment and drive it home.

Second: Gary rides the bus to and from work. Today a neighbor that Gary sees now and then was on the bus today. Gary told her he took another job out of the area and would be moving. She inquired about what we would be doing with our house.

Gary thinks now is not the best time to sell. Our realtor suggested renting in case the job doesn't work out. I say sell. We can't save money and clear out some debt if we rent. But if we did rent our house, we would make it a year lease. So should we sell or rent?

Our neighbor has a friend who needs a place for a year. We met with him tonight and he wants to rent our house. Now all we need to decide is if we actually want to rent it. I think we should just sell it. Then we can save for year and have nice down payment.

The problem with renting is that the amount we can charge is less than the mortgage. So we would still have a monthly house payment. That's not saving. We are meeting with our realtor next week to discuss our options in more detail, so we'll see.