You're moving, but the old house is paid down and in a good area. Do you cash out or keep it as a rental? As someone who both sells and invests in Denton-area real estate, here's the framework I actually use to think it through — no one-size answer, just the questions that decide it.

1. Does it actually cash flow?

Run the real math, not the hopeful version. Add up the true monthly cost — mortgage principal and interest, property taxes (high in Denton County), insurance, and a realistic reserve for maintenance and vacancy (a common rule is setting aside ~10% of rent for repairs and another ~8% for vacancy). Then compare that to what the home would actually rent for. If rent comfortably clears all of it with margin, renting is worth a hard look. If you'd be feeding it $300 a month, that's a different decision.

2. How much equity is sitting in it?

A home with a lot of trapped equity earning nothing is a real opportunity cost. If you're sitting on $150K of equity that could be a down payment on your next place — or two more doors — keeping it as a low-yield rental may not be the best use of that capital. If the loan balance is low and rent covers everything, the equity keeps compounding while a tenant pays down your note.

3. The capital-gains clock (this one has a deadline)

Here's the one most people miss. Under the IRS primary-residence exclusion, if you've lived in the home 2 of the last 5 years, you can typically exclude up to $250,000 of gain ($500,000 married filing jointly) when you sell — tax-free. Convert it to a rental and hold it too long, and you can blow past that 2-of-5-year window and owe capital gains on appreciation you could have taken tax-free. If your home has appreciated a lot, that deadline can be worth more than a few years of rent. Talk to a CPA before you decide.

4. Do you actually want to be a landlord?

Rentals aren't passive. Tenants call at 11pm, HVAC units die in July, and turnovers cost money. A property manager takes the headache but also ~8–10% of rent. Be honest about whether you want the second job — or the cost of paying someone else to do it.

5. What's the local rental picture?

Denton has genuinely strong rental fundamentals: two universities (UNT and TWU) driving steady tenant demand, and a metro that keeps growing. That supports occupancy — but the same new-construction wave that's reshaping the for-sale market also adds rental supply in the newer corridors. Location and price point matter a lot, which is where a local read helps.

A simple way to decide

  • Lean sell if: you have big tax-free gain to capture, lots of trapped equity, the numbers don't cash flow, or you have zero appetite for tenants.
  • Lean rent if: the loan is low, rent covers all costs with a reserve buffer, you have long-term conviction on the area, and you want the appreciation + loan paydown.

Get the two numbers you need

The decision usually comes down to two figures: what it would sell for today and what it would rent for. I can pull both for your specific home and Denton neighborhood. Start with your home's current value, or message me and I'll put together a quick sell-vs-rent comparison. First, it helps to know where the market stands — here's the latest Denton County update.

This is general information, not tax, legal, or investment advice. The capital-gains exclusion has conditions and exceptions — confirm your situation with a CPA before acting.