--- title: Should I Sell My Home or Rent It Out? description: I may need to relocate for my job. Should I keep my home and rent it out while prices are rising or should I sell and use the profits to make a nice down payment on a new home? Our expert answers. authors: - name: Lisa Gibbs url: https://money.com/author/lisa-gibbs/ at_money_since: 2012 articles: 11 covers: - Housing - Insurance - Personal Finance social: - https://x.com/lisagibbs954 former_staff: true published: '2014-05-31T13:00:20.000Z' modified: '2014-05-31T13:00:20.000Z' section: Housing tags: - Ask the Expert - real estate - renting a home - sell or rent - selling a home - should i rent my home - should i sell my home word_count: 237 canonical: https://money.com/sell-my-home-or-rent-out/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Should I Sell My Home or Rent It Out?](https://money.com/img/logo-social.png) **Q: I may need to relocate for my job. I got a deal on it in 2012. Should I keep it and rent it out while prices are rising—or should I sell and use the profits to make a nice down payment on a new home? -- Shane Keys, Atlanta** A: A solid rental property investment generates enough in rent to cover expenses plus a 10% return, says Brandon Turner, an experienced investor and senior editor at real estate investing website [BiggerPockets](http://www.biggerpockets.com "Real estate investing website BiggerPockets"). You told us that you're paying $1,100 in mortgage, taxes and insurance. Add to that a property manager (average cost: 12% of gross rents), repairs, and a reserve in case of vacancies. It's unlikely that the $1,500 maximum in monthly rent you’d likely bring in for your three-bedroom home (check comparables at sites like [Hotpads](http://www.hotpads.com "Hotpads") and [Rentometer](http://www.rentometer.com "Rentometer")) would produce anything close to a 10% return. You also told us that you have $45,000 in equity. Selling and plowing that into your next home would eliminate the need for expensive private mortgage insurance—now costing you $137 a month because you had to go with a low-money-down FHA loan—and it would of course reduce your mortgage payment. Plus, you’ll be able to protect the profit from capital gains taxes (up to $500,000 for married couples in home equity is tax-free), a perk you eventually lose if you convert your home into an investment property. 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