Rent vs. Sell Calculator
Should you sell your rental or keep it? Enter a few numbers about the property and compare 15 years of after-tax wealth from selling and reinvesting, keeping it as a managed rental, or refinancing to buy a second rental.
Wealth Architect · Step 1 of 6
What's your home's estimated market value today?
An informed guess is fine — comparable sales will refine this later.
Educational illustration only — not financial, tax, or investment advice. Projections use a simplified tax model: rental profit is taxed at your marginal rate, rental losses are assumed fully deductible (passive-loss limits can apply at higher incomes), and depreciation recapture is excluded unless turned on. Actual results vary with market, financing, and tax circumstances.
How the Numbers Work
- Net worth on every path is what you would keep if you cashed out that year, after 7% selling costs and 15% long-term capital gains tax.
- Keeping the property includes Red Door’s 9% management fee, the $995 new-lease fee and $350 renewal fee at a 75% renewal rate (about a 4-year average tenancy), 5% vacancy, 10% of rent for maintenance, property tax, and insurance.
- Rent and home values grow 5% a year by default. Every assumption can be changed under Expert Overrides.
- Depreciation is based on your purchase price over 27.5 years. Depreciation recapture is left out by default because most investors sell through a 1031 exchange; you can turn it on.
- The refinance path appears when you own at least 25% equity: a cash-out refinance to 75% loan-to-value funds a 20% down payment on a second rental.
- This is an educational estimate, not tax, legal, or investment advice.
Want Real Numbers for Your Property?
Get a free rental analysis based on comparable rentals near you, or talk it through with our team.