ADVANIHold, rent or sell?
Moving out, inheriting a home, or tired of being a landlord? Put in your numbers and see what each path leaves you with after taxes, side by side. We sell homes, manage rentals and own buildings ourselves, so we have no reason to push you one way.
Year-by-year detail
Want us to check the numbers on your property?
We’ll pull real rent and sale comps for your address and walk you through all three options. We sell, manage and own property, so our advice isn’t tied to one answer. Your inputs above are sent along so you don’t have to repeat them.
Thinking about holding? See how a cost segregation study can front-load your depreciation, or why owners choose us to manage.
Illustration only, not tax or legal advice. This tool simplifies a complicated decision. Results depend on your full tax picture, and actual rents, values, costs and tax law will differ. Talk with your CPA or tax attorney before acting.
How it works. “Sell now” subtracts selling costs, your loan and estimated tax, then grows the remaining cash at your chosen after-tax return. “Rent it, sell later” adds after-tax rental cash flow (also invested at that return) to what you’d net from a sale in the final year. “Rent and hold” shows equity plus invested cash flow with no sale, so no selling costs or tax are taken out; the tax you’d owe on a sale is shown separately.
Rental math. Management fees use our published rates (8.25% for a house or condo, 6% for 2–4 units, 5% for 5+ units) plus a $500 lease-up fee, assuming a new tenancy every two years. Depreciation is straight-line over 27.5 years on the building share of the lower of your cost or today’s value. Rental losses are treated as passive: carried forward and used against later rental income or at sale. The $25,000 active-participation allowance and other exceptions are not modeled.
Sale taxes. The home sale exclusion ($250,000 single / $500,000 joint) is applied when you lived in the home at least 2 of the last 5 years and the sale is within 3 years of moving out. Depreciation is never excluded and is taxed at up to 25% federally. California taxes gains as ordinary income at the rate you enter. Partial exclusions, prior rental use before you lived there, AMT, phase-outs, 1031 exchanges and estate rules are not modeled.
Advani Real Estate Group · Prem Advani, Broker · DRE #01414490 · Affiliated with Compass.