If you bought or refinanced a few years ago, there’s a good chance your mortgage rate is well below what’s available today. That rate is worth protecting rather than giving up.
I’m Robbie English, REALTOR and Broker at Uncommon Realty, and through Uncommon Rentals, my property management division, I help Central Texas homeowners weigh whether keeping that loan and renting the home out beats selling it.
TL;DR
- A low-rate mortgage is worth more to you now than it was when you signed it — replacing it with today’s rates is expensive.
- Rent from a tenant can cover the mortgage while paying down principal and letting the property keep appreciating.
- Selling gives up that financing permanently; a HELOC or cash-out refinance can get you equity without giving up the loan.
- Uncommon Rentals manages the property if you’d rather not landlord it yourself.
Why the Rate Matters More Than People Think
If your mortgage is fixed under 4% and today’s rates are well above that, you’re holding financing that can’t be replicated by selling and buying again. Every rent payment your tenant makes covers a portion of that low-cost loan and chips away at your principal balance — equity you’re gaining without it coming out of your own paycheck. Combine that with ordinary appreciation and the depreciation and expense deductions available on a rental property, and the numbers often favor renting over selling, especially if you don’t need the cash right now.
Why Selling Can Cost You More Than It Looks Like
Selling means closing costs, potentially capital gains tax, and permanently losing that mortgage rate. If what you actually need is access to some of your equity — for a down payment on a next home, for example — a HELOC or cash-out refinance can often get you there without giving up the rental property or the loan attached to it. Which option makes sense depends on your full financial picture, so it’s worth running through with your lender before deciding.
A Real Example
One homeowner I worked with in Cedar Park had a 3.25% mortgage and was ready to sell so she could “start fresh.” After running her numbers, renting instead covered the mortgage with cash flow left over within a few months. A year later her tenants had renewed the lease, her loan balance had dropped, and she was using the equity toward a second property. Every situation is different, but that’s the shape of what this strategy can look like when it works.
What Uncommon Rentals Handles
If renting makes sense for your situation, my team manages the property end to end — marketing, tenant screening, rent collection, maintenance coordination, and an owner portal for real-time reporting — across Austin, Cedar Park, Leander, Georgetown, and the surrounding Central Texas area.
Let’s Run Your Numbers
If you’re weighing this decision, I’m glad to look at your specific mortgage, what your home would realistically rent for, and whether keeping it beats selling for your situation.
