Thanks for the comments! I've attempted to put some numbers to my two options (rent vs. sell). Renting out my place seems like it might be a little better, however there are still risks:
Option 1 - Sell condo: my estimates suggest I might be on the hook for $30,000 (total cost of selling). I would have to put this on my LOC at 6% interest, and since it would be a Debt Emergency, I would throw everything I can at it, paying it off in 10 months.
Pros: free of condo in 10 months, don't have to become a temporary or longterm landlord. Can move on with my life, however if my girlfriend and I want to buy a place, I'll have to save up my share of the DP, which will take another year or two (if we keep renting, I'll just invest)
Cons: big fat cost to sell, in addition to loss of initial DP and monthly mortgage payments since purchase date. Won't be able to start saving for another 10 months.
Option 2 - Refinance and rent out condo: allowing for 2 months of vacancy per year, I would end up subsidizing the total monthly cost of my condo by approx. $500/mth ($6000/yr)*.
Pros: $500/mth is easier to handle than $30,000 debt all at once if I sell. If the market goes up in a year or two, I might be able to break even on sale. Also allows me to save $ each month for investments, or DP on a place better suited for my girlfriend and me. As principal decreases, rent will eventually reduce subsidized amount (if I have to rent it out longterm). Building is 6 yrs old with a decent reserve fund, so no huge special assessments looming as far as I can tell...
Cons: landlording; real estate market may be the same or worse in a year or two. My building is part of a larger complex which may see construction of new buildings in the next couple years, including rental suites. Risk of construction noise/dirt may scare off potential renters, and new rental suites may compete with mine for tenants.
*I might be able to get slightly more for rent, and maybe a year long lease, or airbnb to make up shortfall, however my calculations don't include whatever income taxes I'd have to pay on the rental income, so I'll consider them to cancel each other out.
So with this in mind, is the calculated risk of renting my place out looking like the better option?