Should we sell our house or is it worth renting out

Member since 2025 · 13 posts · 10 votes

We own a home in Kaukauna wi and it's a 3 bedroom 2 bath house. I threw it into the cash flow calculator and it said it would either even out or it willl have a monthly cash flow of around 300$. I set my rent standards a little high and realized that rent is actually not that high.. we have a morgage on it and it looks like the house is selling for more than we originally paid 4 years ago. We plan to buy a second house as well. Should we sell this one and invest in a new one and start fresh? Or should we keep the one in Kaukauna and attempt to rent it out? I'm still new to real estate investing but I'm open to feedback

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Jeff Roth

Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 466 posts · 256 votes

Hi Jade in Kaukauna, WI!

You own a home there, you think will cashflow if you rent it, and intend to buy your next home.

Your question is should you rent it or sell it and buy the next house?

I think this is a calculation a lot of homeowners are making right now--especially if they have a low interest mortgage, equity, and their house will cashflow as a rental.

The choice is a personal one of course, but I think your future self will thank you if you pull out some equity from your existing home with a HELOC for the downpayment on the next house and a cushion renting your current home, use a property manager as you have other things to do, and buy the next house and do the same thing again. Your existing low interest rate mortgage is an asset that you likely won't get again.

To Your Success!

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Dominic Mazzarella
Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes
1y
Quote from @Jade Frank:

We own a home in Kaukauna wi and it's a 3 bedroom 2 bath house. I threw it into the cash flow calculator and it said it would either even out or it willl have a monthly cash flow of around 300$. I set my rent standards a little high and realized that rent is actually not that high.. we have a morgage on it and it looks like the house is selling for more than we originally paid 4 years ago. We plan to buy a second house as well. Should we sell this one and invest in a new one and start fresh? Or should we keep the one in Kaukauna and attempt to rent it out? I'm still new to real estate investing but I'm open to feedback

@Jade Frank

It really depends on your long-term goals. If you're looking for appreciation and are comfortable with being a landlord, keeping it as a rental could work, especially if it's cash-flowing $300/month. But if you'd rather take the equity and reinvest in something with better returns or less hassle, selling might be the better move. One thing to consider is how hands-on you want to be. Managing a rental (even if it cash flows) comes with responsibilities, and it might not be worth it for $300 a month. Have you looked into property management options or run numbers factoring in potential vacancies and maintenance?

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Ben ScottPro Member
Property Manager · Oklahoma City, OK · Member since 2019 · 578 posts · 351 votes
1y
I'd never advocate for someone selling an asset unless they absolutely have to or unless selling aligns with their goals. Depending on your debt to income, you might have to sell or have an executed lease to secure financing to buy the second home.
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Jeff Roth
Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 466 posts · 256 votes
1y
Hi Jade in Kaukauna, WI!
You own a home there, you think will cashflow if you rent it, and intend to buy your next home.
Your question is should you rent it or sell it and buy the next house?
I think this is a calculation a lot of homeowners are making right now--especially if they have a low interest mortgage, equity, and their house will cashflow as a rental.
The choice is a personal one of course, but I think your future self will thank you if you pull out some equity from your existing home with a HELOC for the downpayment on the next house and a cushion renting your current home, use a property manager as you have other things to do, and buy the next house and do the same thing again. Your existing low interest rate mortgage is an asset that you likely won't get again.
To Your Success!
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Paul Novak
Rental Property Investor · WI · Member since 2023 · 192 posts · 144 votes
1y
I agree with what some others have said, it depends on your goals. My feedback based on what I would do is hold the house. I am going to assuming it's a nice house if it was your primary residence and it's in a nice location. If you can afford to buy another house and hold on to this one I would try and do it. I am not a big fan of selling assets once I have worked to acquire them. I don't know how long you have owned it but I am willing to bet if you have owned it for at least a few years you probably have a rate on that property that will be hard to get again. You probably also purchased the house for much less then someone else would be able to buy it for now. Those two factors work in you advantage allowing you to charge rents that let you cashflow when others trying to get in the market couldn't purchase a similar house and make the numbers work. While no one can predict what the market will do in the future since I have started purchasing long term rentals rents have only gone up which has allowed my cashflow to continue to grow. I am in Sheboygan. I say if you can keep it, keep it. 3 bedroom 2 bathrooms houses are my favorite rentals. They also normally attract really good tenants. I use rentometer.com to do my analysis for setting rent prices. There are many tools out there. Below is the quick data I pulled.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
I agree with Ben. I recommend people only sell if (a) you can invest the capital in something that performs better, or (b) it aligns with your goals. For example, I hate to sell anything, but I am selling two properties to raise funds for a new primary that meets my goals.
Study the market and really lock in what it will rent for. Ensure you account for expenses like maintenance, vacancy, or capital expenditures. If the home pays for itself and you can afford it, keep it.
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Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
1y
@Jade Frank

I agree with what @Dominic Mazzarella and others are saying here, but If you find the downside outweighs the gain and you ultimately decide to sell the property, Since the property was held for investment use it would qualify for a 1031 exchange.

This would allow you to indefinitely defer all of the tax if you sold, and use the tax you would have had to pay, to purchase something nicer in an area with a greater growth potential.

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David Jesperson
Real Estate Agent · Member since 2023 · 14 posts · 8 votes
1y
I agree with what was said by the others. If the property is able to cashflow at all or at least cover all expenses I would keep it. (make sure you are budgeting for maintenance and management if you plan to use it) Rent will increase over time and your property will continue to appreciate in value.
However, if you're unable financially to purchase a new home without selling your current home then the choice is made for you. Stay and let the property continue to appreciate or sell and purchase a better producing asset. Consider purchasing a duplex or small multifamily for your next home. A tenant pays a portion or your mortgage and you get to try being a landlord. If you're curious about what your current home is worth feel free to reach out, I'm also an agent based out of Green Bay. I can at least provide you some comps for your house so you can see what your options are for selling vs renting
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