Sell it, or keep it and rent it out?

Moving to a new home? Compare Option A: sell now with Option B: keep it as a rental, including the costs people forget and the effect on buying your next home.

These numbers are estimates only and may not be accurate. They depend on your real interest rate, credit, income and the home's actual taxes and insurance. Contact us for accurate figures; it's free and there's no obligation. The starting interest rate (6.5%) is an example only, not a quote: your rate depends on your credit, loan type, down payment and the market, and can be higher or lower. Change it to see the difference.

Your home and loan

Home value today ($)

Mortgage balance ($)

Mortgage rate (%)

Years left on the loan

Cost of selling (% of price) commission, deed stamps, title, repairs

As a rental

Monthly rent ($)

Empty between tenants (% of the year)

Property management (% of rent) 0 if you manage it yourself

Repairs and upkeep ($ a year)

Property tax as a rental ($ a year) no homestead: usually much higher

Landlord insurance ($ a year)

HOA ($ a month)

CDD ($ a year)

Looking ahead

Home value rises each year (%)

Rent rises each year (%)

If you sell, the cash earns (% a year)

Compare over

Rental cash flow in year 1

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Option A: cash from selling now
Mortgage payment (principal & interest)
Rental cash flow over
Equity if you sold then (after costs)
Option B total after
Option A: sale cash invested, same period
Effect on qualifying for your next loan*

*Lenders usually count about 75% of the rent and the full rental payment. A positive number helps you qualify; a negative one counts against you.

Estimates only. Contact us for accurate figures: free, no obligation.

Your full name

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Before you become a landlord

Homestead ends. Your property tax usually resets to the full market value. Tell the property appraiser when the home is no longer your main home.
Insurance changes. You'll need a landlord (dwelling) policy, which often costs more.
Your next home. Keeping this one means your equity isn't available for the next down payment, unless you borrow against it.
HOA rules. Some communities limit or ban rentals, or require tenant approval.
Taxes when you sell. Renting for more than about 3 years can affect the tax-free gain on a former home. Ask a tax professional.

Being a landlord in Florida

Screen tenants the same way for everyone, following fair housing law.
Use a written lease. Security deposits have strict rules, including deadlines for returning them.
Budget for repairs, empty months and the occasional bad tenant.
A property manager typically charges a percentage of the rent, plus a fee to find a tenant.

Rental cash flow Investors hub

Common questions

Should I sell my house or rent it out when I move?

It depends on the rent compared with your costs, how much equity you have, whether you need that equity for your next home, and whether you want to be a landlord. The calculator compares both options over the years you choose.

What happens to my Florida homestead if I rent out my home?

Once the home is no longer your main residence, you lose the homestead exemption and the Save Our Homes cap, so the property tax is usually reset to the full market value and can rise a lot. Renting out a homestead property without telling the property appraiser can lead to back taxes and penalties.

Does rental income help me qualify for my next mortgage?

Often, yes. Lenders usually count about 75% of the rent (with a signed lease, or from your tax returns once you have a rental history) toward your income, and count the full payment on the rental as a debt. Ask us how your numbers would work.

Will I pay tax when I sell a former home?

If you lived in the home as your main home for 2 of the last 5 years, you may be able to exclude up to $250,000 of gain ($500,000 for married couples) from federal income tax. Renting it out for longer can reduce that. Ask a tax professional about your situation.

For education and planning only. Approximate estimates; not legal, tax or financial advice. Not a loan offer, approval or commitment to lend. Example rates are for illustration only; rates can change and may not be available at commitment or closing. Rates, terms, taxes, insurance and program rules vary and change; your actual numbers may differ. Mortgage services by Bill McElhill, NMLS #2176490, licensed in Florida, Georgia and Texas.

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