Financial Strategy Analyzer
Sell vs. Rent Decision Model
1. Key Inputs & Assumptions (Read-Only)
Property & Sale Data
Used to calculate Annual Maintenance (2% of value).
The initial equity base for appreciation calculation.
Time & Investment Parameters
The length of the investment comparison period.
Fixed Rates & Expenses
- New Monthly Rent: $3,000
- Monthly Mortgage (PITI): $2,150
- LLC Fee (CA): $800/year
- Maintenance Rate: 2% of Property Value
- Vacancy Reserve: 5% of Rent
- YoY Appreciation: 3%
- Equity Split: 3 Ways
2. Comparison Results (Over 1 Year)
Scenario A: Sell Now
This shows the immediate, guaranteed proceeds distributed to the owners.
Scenario B: Rent & Hold
Total estimated value after 1 year of appreciation and cumulative cash flow.
3. Annual Cash Flow Breakdown
The recurring annual income and expenses for the Rent/Hold scenario.
Important Tax Note
Selling is a simple, clean, one-time cash transaction, while renting introduces significant complexity, non-cash tax accounting (depreciation), and potentially deferred tax losses due to passive activity rules, all while costing you cash every month. Consult a CPA regarding your specific tax exposure.
* This analysis simplifies the calculation by using the 'Net Proceeds if Sold Today' as the equity base for future appreciation. It does not account for the tax implications of cash flow, mortgage principal paydown, or transaction costs of selling after the hold period.