What If You Rent Out Instead of Selling? A Net Sheet Comparison
If you have significant equity in your home, it may make sense to rent it for a year instead of sell it now.
The current housing market in San Antonio and the Texas Hill Country is proving more complex than in years past. Sellers are facing longer days on market, increased competition from new home construction, and elevated mortgage interest rates that are sidelining a portion of would-be buyers.
For homeowners who planned to sell this spring, the experience may feel like a frustrating waiting game. Builders are offering significant incentives—rate buydowns, design credits, and even agent bonuses—all of which put additional pressure on resale listings. Meanwhile, rising inventory is giving buyers more options and more leverage.
If you’re sitting on substantial equity but feeling hesitant to list your home in the current climate, you’re not alone. One increasingly common question is:
Would it make more sense to rent my home for a year and sell in 2026 instead?
Let’s examine that option through the lens of a side-by-side financial comparison.
📈 Scenario Overview
Property: Single-family home in Fair Oaks Ranch
Estimated Value: $725,000
Mortgage Balance: $190,000
Equity Position: ~74%
Property Tax (Annual): ~$12,500
Insurance (Annual): ~$2,800
Monthly Rental Estimate: $3,800 (conservative for a well-maintained 4BR home)
📊 Net Proceeds if You Sell Now (Spring 2025)
| Item | Amount |
|---|---|
| Sale Price | $725,000 |
| Mortgage Payoff | -$190,000 |
| Closing Costs (Title, Escrow, Misc.) | -$12,000 |
| Estimated Commission (6%) | -$43,500 |
| Net Proceeds | $479,500 |
📆 Net Rental Income for One Year (2025–2026)
| Item | Monthly | Annual |
|---|---|---|
| Rental Income | $3,800 | $45,600 |
| Property Taxes | -$1,042 | -$12,500 |
| Insurance | -$233 | -$2,800 |
| Maintenance Reserve (8%) | -$304 | -$3,650 |
| Property Management (8%) | -$304 | -$3,650 |
| Net Cash Flow | $23,000 |
📅 This assumes no major repairs or vacancies. Adjust your own numbers based on the age of your property and your tolerance for potential disruption.
📅 Future Sale in Spring 2026 (Assuming 3% Appreciation)
| Item | Amount |
|---|---|
| Sale Price (3% appreciation) | $746,750 |
| Mortgage Payoff | -$180,000 |
| Closing Costs | -$12,500 |
| Estimated Commission (6%) | -$44,800 |
| Net Proceeds | $509,450 |
🔢 Total Combined Return from Renting + Selling in 2026
| Item | Amount |
|---|---|
| Net Rental Income (2025) | $23,000 |
| Net Proceeds from Sale (2026) | $509,450 |
| Total Combined Return | $532,450 |
| Net Proceeds if Sold Today | $479,500 |
| Potential Additional Return | $52,950 |
🧰 Final Considerations
Delaying a sale in favor of a short-term rental strategy can offer a financial edge, especially if you have:
Low remaining mortgage balance
Strong rental demand in your area
Confidence in your property's condition
However, this route isn’t risk-free. Vacancy, tenant issues, rising insurance costs, or an unexpected downturn could impact net returns. There’s also the matter of capital gains implications and your personal timeline for moving on.
In an uncertain market, it’s natural to look for flexibility. For many, renting instead of selling can provide time to wait for more favorable conditions while still earning monthly income on a valuable asset.
