To use this calculator, input the current property value, mortgage balance, and other relevant financial details. Adjust the sliders to see how changes in rent, appreciation, and holding period affect your financial outcomes. The results will show the net gain from renting versus selling, helping you make an informed decision.
The calculator uses the following formula to determine the net gain from renting versus selling:
Net Gain from Selling: Property Value - Mortgage Balance - Selling Costs
Net Gain from Renting: Total Rent Income - Total Property Taxes + (Future Property Value - Mortgage Balance)
Suppose you have a property valued at $300,000 with a mortgage balance of $100,000. If you sell, you incur 6% selling costs. Alternatively, you rent it out for $1,500 per month, with a 2% annual rent increase. After 5 years, the calculator shows the financial outcomes for both scenarios.
Remember that market conditions can change, affecting property values and rent. Also, consider personal factors such as your financial goals and risk tolerance. For more detailed analysis, consult a financial advisor.