Renting out is a business. Selling is a liquidity decision. The right answer depends on whether the property improves your life — or becomes a constraint.
| Signal | Leans toward | Why it matters |
|---|---|---|
| High equity locked, low liquidity | Sell | Equity you can’t use is not optionality. |
| Rent covers mortgage + buffer | Rent out | Cashflow buys time through bad periods. |
| You’ll likely need to buy another home soon | Sell | ABSD / cash constraints can punish “I’ll keep both”. |
| Vacancy/tenant risk stresses you | Sell | Owning a rental is running a risk portfolio. |
| Strong reasons to hold (location, future use) | Rent out | “Strategic hold” can be rational — if you can carry it. |
The worst outcome is “marginal rental + thin liquidity + rate shock”. That’s how people end up selling at the wrong time. If holding makes you fragile, selling is not defeat — it’s risk management.