Should I Keep My Current Home as a Rental?

You've built equity in your home.

You're ready to move.

And now you're wondering:

"Should we sell it—or keep it as a rental?"

This is one of our favorite real estate questions because there isn't a one-size-fits-all answer.

Start With the Numbers

Determine:

Expected rent

minus

Mortgage + taxes + insurance + maintenance + vacancy + management + other expenses

equals your estimated cash flow.

But cash flow isn't the only consideration.

What About Equity?

Your existing home may have significant equity.

Selling could allow you to use that money toward your next home or another investment.

Keeping it means that equity remains tied up in the property.

Consider Your Mortgage

If you have an older, favorable mortgage rate, keeping the property may be worth exploring.

But don't let a low interest rate automatically convince you to become a landlord.

Are You Ready to Be a Landlord?

Ask yourself:

• Can I handle tenant communication?

• Can I handle repairs?

• What happens if the home is vacant?

• Do I understand landlord responsibilities?

• Would I hire a property manager?

Rental property can be a powerful long-term wealth-building tool.

But it's still a business.

Run Both Scenarios

We recommend calculating:

Scenario A: Sell the home

How much would you net?

Scenario B: Keep the home

What would the projected return look like over several years?

Then compare the two.

That's where a good real estate and financial team can be valuable.

Ali Rohde, exp Realty