Should You Keep Renting or Sell Your Property?
Keeping a rental property builds wealth through two channels: monthly net income and price appreciation. But holding costs — property tax, maintenance, vacancy — eat into returns. The "keep" scenario total = projected value + cumulative net rent − total property tax paid.
Selling converts equity to liquid capital. After capital gains tax, you reinvest the proceeds at your target return rate. The "sell" scenario total = after-tax proceeds compounded at your reinvestment return for N years.
Generally, if appreciation is strong and rental yield is high relative to your alternatives, keeping wins. If the property generates modest income and you can invest sale proceeds at a higher return, selling may come ahead — especially after accounting for capital gains tax exclusions available to primary residence sellers in the US.
Frequently Asked Questions
No — enter only net rental income after all operating costs (mortgage interest, repairs, insurance, vacancy). The property value comparison assumes you own it free and clear or that loan costs are netted out of your monthly income figure.
Multiply: $2,400 × 0.95 = $2,280. Enter $2,280 (or further subtract maintenance costs) as your monthly net rental income.