Selling vs. renting it out
Plenty of military owners hold their Hill AFB home as a rental when they PCS. Sometimes that is the right call. Often it is not. Here is the honest framework:
- Equity already built. If you have meaningful equity, selling lets you redeploy it into your next home, often with a stronger down payment at the next duty station.
- Real cash flow, not hopeful cash flow. A rental needs to cover mortgage, taxes, insurance, vacancy, repairs, and management. We run the math with conservative numbers, not best-case ones, based on my experience as a professional landlord and board member of the Northern Utah Real Estate Investors Association.
- Distance and management. Self-managing from another state rarely goes the way people imagine. Professional management is typically eight to ten percent of rent, plus leasing fees.
- Capital gains window. The IRS primary residence exclusion has a use-test window. Holding a property as a rental too long can cost real money at sale time. Confirm specifics with a tax professional.