How can I make the most profit with this house?

[REI NOOBSTER]

I bought my residence in Sept. 06 for 106k including all closing costs and cash back. I want to move in 08' and am not sure what I should do with this house.
I can rent, sell or or do some kind of lease option. Here are the numbers,

(A) Sell for 125k which is a little less than what I can get but would sell faster and would leave me a little over 15k profit if I do FSBO. I do not know much about holding mortgages but I would hold the mortgage for the 15k if it was a 10 year loan @ 7.5%. I don't think that would make much sense for the buyer though.

(B) Rent for $1100 a month. Total debt service a year is $10,856-$13200 (gross rent)=$2344 a year which does not cash flow.

(C) Some kind of lease option with 5k down. I am not sure if I can or how to maximize profit by going this route.

So my mortgage is $838 a month with what equals to $66 a month in water and sewer. I owe 106k and can sell for 125k.  The market is still okay in my area. Slow but prices have not declined. It is one of the last affordable areas with in commuting distance to the city. Are there any ways I have not thought of to make a decent proftit on this house? Any info would be greatly appreciated.
Thanks

[Roger J]

Noob,

If you are planning on moving in '08, simply wait until after Sept, and sell.  Under current tax law, any $$$ you profit will not be taxable income.  That is the best way to increase your profits.

Option b isn't good if you don't cashflow.

option c isn't good because you still won't cashflow.

Of course, the problem with option A is that the only way you have figured for a profit is going FSBO which is fine if you know what you're doing, but you still a higher than average chance of not selling at all, or selling for less than what a knowledgable RE agent would get for you.

Raj