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Should You Sell the Rental or Keep It?

What the property really returns after every cost, and what that return is on the equity sitting inside it.

Most small landlords judge a rental on the rent cheque. The number that actually matters is what it returns after everything, and what that return represents on the equity sitting inside the property doing nothing.

Put your real figures in. Nothing is sent anywhere.

The property

Monthly unless the label says otherwise.

$
%
%
$
$
$
$
$
$

If you sold

$
$
%

What it actually returns

Gross rent, annual$0
Vacancy$0
Management$0
Tax and insurance$0
Maintenance and turns$0
Capital set-aside$0
Mortgage$0
Cash flow, annual$0
Per month$0
Equity tied up$0
Return on that equity0%
Net if you sold$0

The three numbers landlords get wrong

LineWhat usually happens
Capital set-asideLeft at zero, because the roof has not failed yet. On older Tulsa stock the roof, HVAC, water heater and supply plumbing all arrive within a few years of each other, and that bill is real whether or not it is budgeted
Your own managementEntered as zero because you do it yourself. That is a genuine cost in hours, and it is the thing most landlords actually want to stop doing
Turn costsUnderestimated, because the last turn was years ago. Materials and labour have risen faster than rents on older stock

What this tool will not tell you

It will not tell you what to do with the money if you sell. That is investment advice and we are property buyers, not advisers. It also leaves out appreciation, depreciation recapture and capital gains, all of which are real and all of which depend on facts specific to you. Our guide to capital gains on an Oklahoma sale is a starting point and a CPA is the finishing one.

What it does show is the honest annual return on the equity currently sitting in the property. That number is worth knowing either way, including if the answer is that the rental is performing well and you should keep it.

Questions about this

How do I work out whether a rental is still worth keeping?

Take the rent, subtract vacancy, management, tax, insurance, maintenance, turn costs, a set-aside for big-ticket items and the mortgage. What is left is the cash flow. Divide it by the equity sitting in the property and you have the return that capital is actually earning.

What is a capital set-aside and why does it matter?

An annual amount put aside for the roof, HVAC, water heater and plumbing. Landlords routinely leave it at zero because nothing has failed yet, but on older Tulsa stock those items tend to arrive within a few years of each other and the bill is real whether or not it was budgeted.

I manage it myself, so should management be zero?

In cash terms yes, but it is not free. It is hours, and it is usually the part landlords most want to stop. Enter a percentage if you want to see what the property returns without you working on it.

Does this account for appreciation or tax?

No. It leaves out appreciation, depreciation recapture and capital gains, all of which are real and all of which depend on facts specific to you. A CPA is the right person for that side.

Can I sell a rental with tenants in it?

Yes. We buy with the lease in place and take over as landlord at closing, so nobody has to be moved out and you are not running an eviction to make a sale possible.

Will you buy more than one at a time?

Yes. If you hold two, three or five we will price them together as a single transaction rather than making you sell one at a time and carry the rest while you do.

What sellers say

Sellers we have bought from

A few of the people who have sold to us.

★★★★★

Working with cash home buyers northeast oklahoma was a very positive experience. Nadir was friendly, knowledgeable, and professional, and made what could have been a difficult process feel simple.

Andrea T.Verified seller
★★★★★

I am very happy with my experience with sell house fast northeastern oklahoma. Nadir was responsive and dependable, and he made sure the process stayed on track. I would gladly work with him again.

L W.Verified seller
★★★★★

The team at we buy houses broken arrow made everything much easier than I expected. Nadir was professional and easy to communicate with, and I appreciated how quickly he helped move things forward.

Fred F.Verified seller
★★★★★

I had a smooth experience with Tulsa House Buyer broken arrow. Nadir was straightforward, respectful, and knowledgeable, and he made sure I understood what was happening throughout the process.

Dylan A.Verified seller
★★★★★

Cash home buyers broken arrow ok was exactly what I needed. Nadir made the process simple, communicated clearly, and helped everything move smoothly from start to finish. I really appreciated how easy the experience was.

Kaleb W.Verified seller
★★★★★

My experience with we buy houses bixby was excellent. Nadir was professional, responsive, and easy to work with, and the entire process was handled quickly without unnecessary stress.

Michael D.Verified seller

These are from sellers we have bought from. We are also asking each of them to post on our Google Business Profile, because a review you can verify at the source is worth more than one printed on our own website.