Sell VS Rent - Sacramento

I happened to see this in reddit, posting it here. I do not know anything more than this.

I know many of us are PRO-RENT (not sell) by nature, but everything needs precise calculation to see whether we are doing right or wrong.

What will you do if you were in such situation?


I live in a house I own in the suburbs of Sacramento, CA. I accepted a job which will move me to the suburbs of Salt Lake City, UT. For the last week I have gone back and forth on whether I should sell the house or rent it out. I believe all the relevant information is as follows;

I bought the house (95765 (Rocklin, CA)) in 2011 at $250K with 20% down (fix loan for $200K @4.25%)


No brainer, sell and get the tax free gain. Besides calculations don’t figure in maintenance, water sewer, garbage, gardening. …Put the money in the Utah house…Never become a landlord remotely unless you try locally first…



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Except this part, he stands to gain at least 4% (to 5%) appreciation with 5.9% cap rate.

I am always biased with renting like many others. Here are the figures I have calculated. Does it sound good or something I can refine further?

I always thought a major pro of being a landlord is rents increase with time, and the biggest landlord cost (mortgage) is fixed. CA is even better since prop 13 caps property tax increases. I’m not sure about Sacramento appreciation vs Bay Area.

Also, I know too many people that left the Bay Area for work and came back later. When they returned, they were priced out of the housing market. I’ve only met people that regret selling their Bay Area home. I’ve never met someone that regretted keeping it. As long as nothing similar to Vancouver’s foreign buyer tax happens, then Bay Area real estate will outperform the vast majority of US markets.

Have you done the math to know if she gains more by selling it and putting that money towards down payment on the other house?

Some people, like me, can’t deal nor want to deal with the suffering of people renting, nor the pain of commuting back and forth to resolve an issue.

In this example this person has no experience and is not aware of all the costs, or the consequences of a long vacancy…The yard will fall apart, tenants never take care of the yard, gardener $100/m, the water, sewer, garbage could be another $200/m…Tax free is always the way to go. .Take the money and don’t look back…We are talking Sacramento not Palo Alto


No Doubt ! It is landlord hassle. If he is willing to bear this pressure, then he can do !!

Sell, put some money in RE in AZ to please his dad and the rest put in VFINX. Done. No need to do comparative study and sophisticated computation, future is unpredictable. RE is in suburbs of Sacramento, not downtown, and not in SFBA :slight_smile:

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The location Rocklin, CA is growing with new community. He states good schools and lived there for many years. Sacramento is spill over of bay area as many bay area people buy Sacramento, Stockton and Lake Tahoe…

Never a fan of Sac…sell while you can get good money from the property. If the property is in the bay area that’s another story.

Rocklin is one of the top communities in Sac. What’s the historical appreciation tate?Many 2-3%, not 5-6%


A quick check indicates Rocklin is not as hot as Granite Bay.

Elt1 is correct

Maintenance will cost quite a few $$$.
Appliance replacement also.
Do not see flood insurance in the spreadsheet above.

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