This tool models three questions: (1) what are the net proceeds of selling now vs. renting for a period and then selling; (2) at what sale price does cutting the price and selling now become worse than renting; and (3) how much annual price appreciation is required to make holding the asset competitive with selling now and investing the proceeds in T-bills. Adjust all sliders to match your actual assumptions.
Key outputs — at current list price ($4,500,000)
Sell now — net proceeds
—
after commission
Rent 12 mo, sell at list
—
vs. selling now
Required appreciation to break even
—
annual rate to match selling now + T-bills over 24mo
Price crossover point
—
below this, 24mo rent wins
Assumptions — adjust all sliders
Appreciation scenario — what holding is actually worth
Net proceeds by sale price — sell now vs. rent then sell (with appreciation)
Sell now
Rent 6 mo, then sell
Rent 12 mo, then sell
Rent 24 mo, then sell
Hold & sell (appreciation applied)
Price cut milestones
Price reduction schedule — sell now at each milestone
| Scenario | Sale price | Net proceeds | Loss vs. $4.5M list |
vs. rent 12mo + sell same price | T-bill yield on proceeds (yr 1) |
Required appreciation to break even vs. selling now
| Holding period |
Total carry cost |
T-bill return foregone |
Total cost of holding |
Required price gain |
Required annual appreciation % |
Cumulative cash position — renting vs. selling now + T-bills (months 0–36)
Each line shows the cumulative financial position of renting at that monthly rate compared to having sold today and invested proceeds in T-bills. Lines above zero mean renting is ahead; below zero means you are behind. The renter friction discount is applied as a one-time hit at the point of eventual sale. Appreciation is not applied here — this chart isolates the rental income question.
What renter friction actually costs
Model methodology
Sell now: Net proceeds = sale price × (1 − commission%). Invested immediately in T-bills at stated rate.
Rent then sell: Net = (sale price × (1 + appr% × hold years) × (1 − friction%) × (1 − comm%)) + net rental cash flow over hold period − T-bill return foregone on sell-now proceeds.
Hold & sell (appreciation line): Sells at list price × (1 + annual appreciation%)^hold years, with no rental income assumed, minus full carry over the period and T-bill opportunity cost. Shows pure appreciation scenario without the complexity of managing tenants.
Required appreciation to break even: The annual appreciation rate at which holding and eventually selling at the appreciated price exactly equals selling now and investing in T-bills. Accounts for carry costs during the holding period. Calculated for 1, 2, 3, 4, and 5 year horizons.
Crossover price: Sale price below which renting 24 months and selling produces a better outcome than selling now. Calculated by linear interpolation. Appreciation is applied to the rent-then-sell scenarios — meaning if appreciation is positive, the eventual sale price is higher.
Simple (non-compounding) interest used throughout for clarity. Rental income is net of management fees and maintenance but gross of income tax. Consult your CPA.