Author Topic: Rent vs. Sell Math  (Read 996 times)

Frugal Vegan Mom

  • 5 O'Clock Shadow
  • *
  • Posts: 70
  • Location: Minneapolis, MN
    • Frugal Vegan Mom
Rent vs. Sell Math
« on: April 16, 2019, 03:07:55 PM »
Could someone point me towards a useful spreadsheet or set of calculators so I can project the costs / benefits of being a landlord over the next 10 years vs. selling and investing the profits?  I feel like there are assumptions and tax considerations I am definitely missing.

nereo

  • Senior Mustachian
  • ********
  • Posts: 10822
  • Location: Just south of Canada
    • Here's how you can support science today:
Re: Rent vs. Sell Math
« Reply #1 on: April 16, 2019, 05:04:23 PM »
Could someone point me towards a useful spreadsheet or set of calculators so I can project the costs / benefits of being a landlord over the next 10 years vs. selling and investing the profits?  I feel like there are assumptions and tax considerations I am definitely missing.

You might want to check out www.biggerpockets.com
Lots of great information there, including posts on exactly the sort of question you are asking, as well as some very good rental calculators.

Psychstache

  • Pencil Stache
  • ****
  • Posts: 842
Re: Rent vs. Sell Math
« Reply #2 on: April 16, 2019, 07:32:19 PM »
I'm not sure what is weirder: That i misread the title as Rent vs. Sell Meth, or that my first thought was "how the hell do you rent meth?"

Second the rec for biggerpockets. It's the first stop for real estate questions. If you strike out there, maybe bogleheads forum?

ender

  • Magnum Stache
  • ******
  • Posts: 4882
Re: Rent vs. Sell Math
« Reply #3 on: April 16, 2019, 08:36:27 PM »
I'm not sure what is weirder: That i misread the title as Rent vs. Sell Meth, or that my first thought was "how the hell do you rent meth?"


.... I also did this.


Archipelago

  • Stubble
  • **
  • Posts: 214
  • Location: U.S.
Re: Rent vs. Sell Math
« Reply #4 on: April 16, 2019, 08:49:04 PM »
PM'd you a potentially useful spreadsheet :)

nurseart

  • 5 O'Clock Shadow
  • *
  • Posts: 75
Re: Rent vs. Sell Math
« Reply #5 on: April 17, 2019, 01:26:25 PM »
There are also some calculators online such as https://www.narpm.org/members/resources/rent-vs-sell-calculator/

Renting meth seems like a highly questionable side hustle but would likely cashflow ok? I'll draw up a spreadsheet. ;-)

Papa bear

  • Handlebar Stache
  • *****
  • Posts: 1216
  • Location: Ohio
Re: Rent vs. Sell Math
« Reply #6 on: April 17, 2019, 08:34:18 PM »
Just post up your numbers on here. We’ll probably tell you to sell!

What’s the house worth and what is your estimated rent?  If it’s not close to meeting the 1% rule, that is the monthly rent is equal to 1% of the value, then you are probably better off selling.  This is especially true if this is your primary residence and you can sell with tax free capital gains.




Sent from my iPhone using Tapatalk

penguintroopers

  • Stubble
  • **
  • Posts: 187
Re: Rent vs. Sell Math
« Reply #7 on: April 18, 2019, 09:27:37 AM »
Renting meth seems like a highly questionable side hustle but would likely cashflow ok? I'll draw up a spreadsheet. ;-)

I think we'll have repossession issues if we had clients who refused to pay...

hallmoll

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Re: Rent vs. Sell Math
« Reply #8 on: May 09, 2019, 06:10:06 AM »
Renting will be a better option. You don't even need to calculate the rent vs. sell. However, make sure that you invest in real estate maintenance for better rental.

nereo

  • Senior Mustachian
  • ********
  • Posts: 10822
  • Location: Just south of Canada
    • Here's how you can support science today:
Re: Rent vs. Sell Math
« Reply #9 on: May 09, 2019, 06:16:00 AM »
Renting will be a better option. You don't even need to calculate the rent vs. sell. However, make sure that you invest in real estate maintenance for better rental.

I'm curious how on earth you could reach such a blanket conclusion based on the limited facts available.
There have been countless threads where the hands-down absolute best option was to sell.

caleb

  • Stubble
  • **
  • Posts: 168
Re: Rent vs. Sell Math
« Reply #10 on: May 09, 2019, 09:29:55 AM »
Just post up your numbers on here. We’ll probably tell you to sell!

Over the long haul and across contexts, the normal outcome is that cash rents for a higher return than physical goods.

Getting physical goods to outperform equities requires consistently achieving better than normal outcomes.

So, sell unless you think your rental situation is an outlier.