You own a home in New York City and you are thinking about your next move. Maybe you want to upgrade, relocate, or your life has changed. The big question: should you sell or keep it and rent it out?
In this video, I walk through exactly how to think about this decision — the financial math, the tax implications, and a simple 5-question framework to help you make the right call for your situation.
Watch the Full Video
https://www.youtube.com/watch?v=BXdGskv7qpg
Video Timestamps
- 0:00 – Introduction
- 0:30 – The financial side
- 1:00 – Calculating rental cash flow
- 2:00 – Real cash flow example
- 3:00 – Capital gains tax exclusion
- 4:00 – NYC tax rates on gains
- 5:00 – Benefits of renting it out
- 6:00 – Landlord responsibilities in NYC
- 7:00 – Building rental restrictions
- 7:30 – Debt-to-income impact
- 8:00 – The 5-question framework
- 9:00 – Free guide
Key Takeaways
The most important tax factor is the capital gains exclusion. If you have lived in your home for at least 2 of the last 5 years, you can exclude up to $250,000 in profit (single) or $500,000 (married) from capital gains taxes. That exclusion has an expiration date — convert to a rental and wait too long, and you could owe roughly 30% in combined federal, state, and city taxes on your gains.
On the rental side, NYC has strong tenant protection laws, co-op buildings may restrict subletting, and your existing mortgage counts against your debt-to-income ratio for your next purchase. But if the numbers work — positive cash flow, long-term appreciation, and tax deductions — holding the property can be a powerful wealth-building strategy.
Download the Free Sell vs. Rent Decision Guide
I put together a guide that walks you through the cash flow calculation, tax exposure comparison, and a complete checklist for making this decision.
Book a Free Consultation
Want help running the numbers on your specific property? Book a free consultation and we will figure out the best move together.
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Joseph Ranola | Bridge and Boro Team at Real Broker
