Ever wanted to run the numbers to determine if you should Save Your House and Rent It, or Sell it, and use the cash to lower your new mortgage balance?

Perhaps this doesn't apply to you, but do you know someone that would appreciate this data?

Well, thanks to my handy new excel spreadsheet, you can easily run the comparison for yourself or someone else, so that you can have total CLARITY regarding the very important decision to be made. Click this link to download it!

I just had the joy of helping a client with this thought process-

(Client's home is currently worth $334,000 and has a mortgage balance of $207,000.)

Did you know there are 3 income streams if you keep a house and rent it out? 

Think of it this way, if you only considered cashflow, $211.88/month may NOT be worth the hassle of being a landlord. Finding tenants, dealing with tenants, doing repairs, etc.

However, this client had had their current mortgage since 2021 and they've made great progress in their amortization schedule. Every month, $435.91 of their mortgage payment paid down their loan (principal payment).

Also, based on a conservative 3% rate of appreciation, the client's house value should be rising at least $835.00 per month! (3% per year of a $334,000 home!)

The total "wealth accumulation" would be $1,482.78 per month!!

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If you consider the full housing expense per month (mortgage principal and interest, taxes and homeowners insurance, even assuming you need to replace one furnace per year $300/month or $3,600 annual, and have the property vacant 1 month of the year for turnover, you're still converting a $211.88 profit! I would consider this a conservative estimate. Sometimes tenants stay longer than 1 year, so you wouldn't have a vacancy, and sometimes you have years when nothing / very little breaks! 

Finally, what if you'd choose to sell the house instead and use the sale proceeds to pay down your new mortgage instead? 

Even if you had $100,280.00 in sale proceeds, and used it all to do a larger down payment, you'd save $34,776.47 in mortgage interest over a 5-year period- which is pretty cool! 

However, if you'd keep your home and rent it out, over a 5 year period you would generate $88,966.93 in net worth for yourself - how amazing is that! See the grand totals below! That beats selling the home by $54,190.46!

I have done this twice now, with the first two homes my wife and I bought, and it has been an exciting and dynamic experience to say the least!

I would be happy to prepare a custom spreadsheet analysis for you if you or someone you know would be interested in a report like this! Just shoot me a text at 414-488-0438