Keep It or Sell It at PCS
Your home today
If you rent it out
If you sell
Rent covers 1.18x the payment (PITI + HOA)
Cash flow -$17,575 + sale $398,629
In favor of keeping
If you keep it 5 years and sell then, you'd end up about $190,555 ahead of selling now. This ignores what you could earn by investing the cash from selling now.
| Year | Rent | All costs | Cash flow | Cumulative |
|---|---|---|---|---|
| 1 | $45,600 | $48,567 | -$5,247 | -$5,247 |
| 2 | $46,968 | $49,026 | -$4,407 | -$9,654 |
| 3 | $48,377 | $49,499 | -$3,541 | -$13,195 |
| 4 | $49,828 | $49,986 | -$2,649 | -$15,844 |
| 5 | $51,323 | $50,488 | -$1,731 | -$17,575 |
How this works
Sell now is today's value minus selling costs and your loan balance. Keep runs year by year: rent less vacancy, property management, maintenance and GET, minus the mortgage payment, rental property tax, insurance and HOA. Rent, expenses and value grow by the rates you set. At the end we add the projected sale (future value minus selling costs and the remaining balance) to the total cash flow. Not modeled: income tax on rent, depreciation, and capital gains tax.
Frequently asked questions
Should I rent out my house when I PCS?
It depends on your cash flow, how long you'd keep it, and your tax window. If rent covers the payment and costs and you're comfortable being a long-distance landlord, keeping can build wealth. If you'd be feeding the property each month or would lose the home-sale tax exclusion, selling may be better.
Do I pay GET on rent in Hawaii?
Yes. Hawaii charges general excise tax on rental income, and many owners also owe transient accommodations tax on short-term rentals. A property manager or CPA can help you register and file.
What happens to my VA loan if I rent it out?
You can keep your VA loan when you move out on orders and rent the home. The loan stays in place, but the entitlement used on it stays tied up until it's paid off or assumed by an eligible veteran.
What is the 3-year rule?
To keep the home-sale tax exclusion you generally must have lived in the home 2 of the last 5 years, which means selling within about 3 years of moving out. Service members on qualified extended duty can suspend that clock up to 10 years. Confirm with a CPA.
Who manages it while I'm gone?
Most owners hire a licensed Oahu property manager, typically for about 8 to 12% of rent. We can introduce you to managers who work with military owners.
Want us to run your real numbers?
Book a free 1-on-1 with Tristan or Patrick. No pressure, no fluff, just your numbers.
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