Free tool
Keep the rental, or cash out? See what your equity is really earning.
Many landlords hold a property that earns little on the equity tied up in it, once vacancy, repairs, taxes, and insurance are counted. This tool shows your real cash flow and the return on the equity you'd free by selling.
Results
Enter your numbers and press Calculate. Nothing here is an offer or an appraisal.
How it's calculated
The math, in plain language
Formula
- Effective gross income = rent × 12 × (1 − vacancy). Operating expenses = taxes + insurance + maintenance + capital reserve + management + other. NOI = income − expenses. Cash flow = NOI − annual mortgage payments.
- Net proceeds if sold = value × (1 − selling costs) − mortgage balance.
- Return on equity = annual cash flow ÷ net proceeds. It ignores appreciation, principal paydown, and depreciation tax benefits, which favor holding — and your time and risk, which favor selling. Weigh both.
Assumptions and limits
- Defaults are examples. Use your actual rent roll, tax bill, insurance premium, and repair history.
- Capital reserve is a planning figure for big-ticket items that don't happen every year; skipping it overstates cash flow.
- Taxes on sale (depreciation recapture, capital gains, 1031 options) are not modeled — talk to a CPA before selling.
- This tool is for general planning only. It is not an offer, an appraisal, or legal, tax, or financial advice. Results depend entirely on the numbers you enter.
FAQ
Common questions
My cash flow is positive. Why would I sell?
Positive cash flow can still be a poor return on a large amount of equity, or come with time and risk you no longer want. The return-on-equity line is the number to look at, alongside your appetite for landlording.
What does a good return on equity look like?
That depends on your alternatives and risk tolerance — we deliberately don't set a benchmark. Compare it to what the freed-up cash could earn elsewhere.
Can I sell with the tenant in place?
Yes. We buy occupied rentals and take over the lease. See our tenant-occupied and rental property guides.
Should I do a 1031 exchange?
It can defer tax if you're buying another investment property and set it up before closing. Ask your CPA or an exchange company; we'll coordinate with them.
Keep going
Related tools and guides
More free tools
- Cost to sell a house
Every common selling cost itemized — commission, closing, prep, concessions, holding — and your resulting net.
- Cash offer vs. listing calculator
Side-by-side net proceeds: a cash offer today versus listing with an agent after costs and time.
- Repair first or sell as-is?
Renovate-then-list net versus sell-as-is net, including overruns, time, and selling costs.
Houston guides
- Rental property
Timing an exit, the tax points to know about, and how to sell an investment property directly to a buyer who understands rentals.
- Tired landlord
For owners who are done: how to exit a rental without turnover work, showings, or evicting anyone.
- House with tenants
Texas lease and notice basics, what transfers to the buyer, and how to sell an occupied rental without disrupting the tenant.
Want to discuss an actual offer?
The calculator uses your guesses. We use real comparable sales and a walkthrough. Enter the address — it's free and there's no obligation.