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 meand 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.