Rent VS. Sell Calculator
Should I Sell or Rent Out My House?
Martin Feinberg Team Property Management Group built this calculator to help Los Angeles homeowners answer one question: does it make more financial sense to rent your house out or sell it?
The calculator below models your full financial picture across whatever hold period you choose, from cash flow and equity to what each path leaves you with in the end. We’ll walk you through the inputs that need some explanation and the Los Angeles-specific factors the numbers alone can’t capture.
Disclaimer: This calculator and the information on this page are for general informational purposes only, not tax or financial advice.
Instructions
If you'd like to have a personal call or zoom meeting with Martin, you can call him directly at 310.728.9960 or schedule an online meeting at this link.
1. Complete the input boxes as described. Once all required inputs are complete, the Rent vs Sell calculator will automatically calculate your answer.
2. Use the links when available to find the data requested if you don't already have that information.
3. Select the ? Icon next to the input label to learn more about the requested data.
4. Refresh the model to return all advanced inputs to default amounts.
Results
If you RENT your property, you'll have $21,355 more wealth in 5 years verses selling your property today.
| Year | Rental Income | Mortgage Expense | Other Costs | Net Cash Flow | House Value | House Equity | Wealth (Rent Out) | Wealth (Sell Now) |
Difference in Wealth (Rent Out to Sell Now) |
|---|---|---|---|---|---|---|---|---|---|
| 1 | - | - | - | - | - | - | - | - | - |
Understanding Your Inputs
Most of the calculator’s fields are self-explanatory, but a few benefit from a quick definition.
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Mortgage DifferenceThis is the gap between your current mortgage payment and what a new mortgage would cost on the same home today.
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Transfer Costs Now and Transfer Costs LaterThe closing costs you’d pay selling today vs. selling at the end of your hold period.
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Prepayment PenaltyApplies only if your loan charges a fee for paying it off early.
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After-Tax Reinvestment RateThe return you’d expect if you sold and reinvested the proceeds elsewhere.
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Occupancy RateAccounts for the months your rental might sit vacant between tenants.
Three inputs move the result more than the rest and are worth confirming with a tax professional:
- Whether the home is your primary residence, since that changes how capital gains are taxed
- Your effective capital gains tax rate
- Your tax rate on rental profit
If you rent, the Property Management Fee input is a real cost, not a placeholder. It’s what covers day-to-day management, tenant screening, rent collection, and maintenance coordination.
What the Calculator Can't Tell You: Renting in Los Angeles
The calculator asks for a monthly rent and a management fee, but what you can actually charge and what it takes to manage the property depend on rules specific to Los Angeles. Many LA rentals fall under the city’s Rent Stabilization Ordinance or California’s statewide tenant protection law, both of which cap rent increases and govern how a tenancy can end. Our team handles the compliance details so you don’t have to stress about it.
The calculator also doesn't model a key factor: Proposition 13. Selling resets your property's tax basis to current market value, while renting keeps your existing, often much lower, basis in place. For homes held long-term, that difference can outweigh what the calculator shows. A tax professional can walk through what it means for your situation.
Renting vs. Selling FAQs
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Should I rent or sell my house?
It depends on your numbers and your goals. The calculator above models the financial side for your specific property and hold period, and the section above it covers the local factors, like rent control and property taxes, that shape the decision alongside the math.
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Is it better to rent or sell a house in Los Angeles?
There's no single answer that fits every LA homeowner. Your existing mortgage rate, how long you've owned the home, and your tax situation all shift the outcome, which is exactly what the calculator above is built to model for your property specifically.
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What are the tax implications of renting out my house?
Rental income is taxable, and renting vs. selling changes how capital gains are treated down the line. The details depend on your situation, so a tax professional can advise on specifics before you decide.
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Do I have to follow rent control if I rent out my house?
Many Los Angeles rentals fall under the city's Rent Stabilization Ordinance or California's statewide tenant protections. Whether your property qualifies depends on factors like when it was built.
Property Management After You Decide
If the numbers point toward renting, the next step is finding the right manager. Martin Feinberg Team Property Management Group handles the leasing, maintenance, and compliance side so your rental performs the way the calculator projected.
Prefer to talk it through?
Contact us to schedule a call.Want to model a different property or see your return if you keep the home as a long-term rental?
Try our ROI calculator nextTerms and Conditions
This Rent Vs. Sell Calculator is provided by Martin Feinberg Team Property Management Group. By using the Rent Vs. Sell Calculator and clicking the “Calculate” button, you agree that the information and estimates provided are for general information purposes and provided “as-is” without warranties of any kind, expressed or implied, including without limitation the warranties that it is free of defects, errors, viruses, merchantable and that it is fit for a particular purpose. Your usage of the Rent Vs. Sell Calculator is at your own risk. Under no circumstances shall Martin Feinberg Team Property Management Group be liable for direct, indirect, incidental, special, or consequential damages, resulting from any aspect of your use of the Rent Vs. Sell Calculator including but not limited to damages that arise from your inability to use the Rent Vs. Sell Calculator or the interruption, modification, or termination of the Rent Vs. Sell Calculator or any part thereof.