Should I sell my rental property or keep renting it?

It depends on which path builds more wealth over your time horizon. Holding earns appreciation, cash flow, and principal paydown; selling frees up equity you can invest elsewhere, but costs you sale fees and taxes. Compare the two ending balances — and weigh the equity you’d unlock against the hassle of being a landlord.

What costs should I include when deciding to sell a rental?

Selling costs typically run 6–8% of the sale price (agent commissions, closing, concessions), plus capital-gains tax and depreciation recapture unless you do a 1031 exchange. On the hold side, factor operating expenses, vacancy, and the opportunity cost of the trapped equity.

Is it better to sell or do a cash-out refinance?

If the property still cash-flows and you mainly want the equity, a cash-out refinance or HELOC lets you pull capital without selling, keeping the appreciation and avoiding the tax hit. Selling makes more sense when the property underperforms or you want out of landlording entirely.

Sell vs. Rent Calculator

Sitting on a property and not sure whether to cash out or keep renting? This compares the long-run wealth of selling and reinvesting against holding and renting — including appreciation, cash flow, and principal paydown.

The Property

Current Value

Mortgage Balance

Interest Rate (%)

Years Left on Loan

If You Hold & Rent

Monthly Rent

Monthly Expenses (excl. mortgage)

Taxes, insurance, maintenance, management, vacancy.

Annual Appreciation (%)

If You Sell & Invest

Selling Costs (%)

Investment Return (%)

Return if you invest the proceeds elsewhere.

Hold Period

After 10 Years

Net difference

Hold & Rent

Sell & Invest

Monthly Cash Flow$0

Cumulative Cash Flow$0

Future Equity (hold)$0

Net Sale Proceeds Today$0

Simplified comparison: includes appreciation, principal paydown, and cash flow, but not taxes, rent growth, or depreciation. A 1031 exchange or the tax hit on a sale can swing the answer — treat this as a starting point.

Sell or Keep Renting? How to Decide

The financial question is simple even if the math isn't: which choice leaves you wealthier at the end of your time horizon? The calculator pits two paths against each other.

Hold & rent earns three things at once — appreciation on the whole property value, monthly cash flow, and equity from your tenant paying down the loan.
Sell & invest frees your trapped equity today (after sale costs) to compound elsewhere — but you give up the leverage and the cash flow.

One nuance the calculator flags: if you mostly want the equity, you may not need to sell at all. A cash-out refinance or HELOC pulls capital while you keep the asset and its appreciation — and avoids the tax hit a sale triggers (which a 1031 exchange can otherwise defer).

Sell vs. Rent Calculator

After 10 Years

Sell or Keep Renting? How to Decide

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