You're moving out of your San Antonio home. The default move is to call a Realtor, list it, pay 5-6% in commissions, and walk away with the equity. That feels simple.
But for many owners, holding the property as a rental builds more wealth over 10 years than selling and reinvesting the proceeds. The math is not obvious. Most owners never run it.
The True Cost of Selling
On a $400,000 home in San Antonio, selling costs typically run: agent commission ($20,000-$24,000), closing costs and concessions ($4,000-$8,000), prep and repairs ($3,000-$10,000), capital gains tax if it's not your primary residence anymore. Net to you: $355,000-$370,000.
That $370,000 reinvested at 7% grows to about $730,000 over 10 years. Not bad.
The True Picture of Holding
Keep the same home as a rental. Estimated San Antonio rent: $2,400-$2,900/month depending on submarket. After mortgage, taxes, insurance, maintenance, vacancy, and management fees, you might net $400-$700/month in cash flow. That is not the main return.
The main return is principal paydown (tenants paying your mortgage), appreciation (the property's value growing), and depreciation deductions (a paper tax loss that shelters your other income).
Over 10 years on a $400,000 San Antonio home, you typically see: $40,000-$60,000 in principal paydown, $120,000-$180,000 in appreciation (at modest 3-4% annual growth), and $60,000-$80,000 in cash flow. Total wealth created: $220,000-$320,000 on top of your existing equity. The combined position often beats selling and reinvesting in index funds.
When Selling Is the Right Call
Selling makes sense if: you need the cash for a higher-return opportunity, your property has major deferred maintenance you don't want to fund, your rental cash flow would be deeply negative, or you simply don't want the responsibility of being a landlord even with professional management.
When Holding Is the Right Call
Holding makes sense if: you have a low fixed-rate mortgage from 2020-2022, your property is in a San Antonio submarket with steady renter demand (think Alamo Heights, Stone Oak, or New Braunfels), you have the cash reserves to absorb a vacancy or major repair, and you have a professional manager so the property does not become a second job.
Northpoint built a free rent-vs-sell calculator that runs the full 10-year comparison for your specific San Antonio property. It models mortgage, taxes, appreciation, reinvestment scenarios, and capital gains. Before you list, run the numbers.
Want this handled for you?
Northpoint manages rentals in San Antonio, TX with the same discipline we write about. No guessing. No chasing.
Get a Free Rental Analysis