Should You Sell Your Home or Turn It Into a Rental? A Portland Realtor’s Honest Take

Hey everyone, Shawn here — your friendly realtor guy from Portland, Oregon.

When I sit down with potential sellers, one of the first questions I always ask is:
“Have you thought about keeping this as an investment property instead of selling?”It’s a big decision, and there’s no one-size-fits-all answer. In this post, I’ll share my thoughts on how to decide whether to sell your house or convert it into a rental. We’ll cover what makes a property “rentable,” which types work best as rentals (and which don’t), and other key factors like your age, finances, and long-term goals.

Quick disclaimer: This is just my opinion based on years of working in the Portland market — not personalized financial or investment advice. Always consult a pro for your specific situation.

First Question: Is Your Property Actually Good for Renting? (Rentability Check)
Not every home makes a great rental. The key is “rentability” — how easily and profitably can you rent it out? Here’s what I look at:

• Rental income potential — After expenses, does the rent cover the mortgage, taxes, insurance, maintenance, and ideally leave some cash flow?
• Turnover/refresh costs — When a tenant moves out, how much will it cost to clean, repaint, replace carpet/floors, fix appliances, etc.?
• Time to re-rent (vacancy risk) — How long might it sit empty between tenants?

Smaller, entry-level single-family homes usually win here. Think 3-bedroom, 2-bath starter homes — no HOA or a very limited one. Why these work well in Portland:

• They often have low mortgage payments (especially if bought years ago at 3% rates).
• Current rental rates for a solid 3-bed single-family home can easily beat the old mortgage + expenses, leaving a few hundred bucks in positive cash flow each month.
• Refresh costs stay manageable — maybe $10,000–$15,000 for new flooring, paint, and minor fixes instead of $30,000–$40,000+ on bigger homes.

Bigger homes? Proceed with caution. Imagine a 3,500 sq ft house valued over $700,000 (still possible in some Portland neighborhoods, though the median sits around $500k–$520k in early 2026). Tons of carpet, multiple bedrooms/baths — refreshing after a tenant leaves could easily hit $30k–$40k. Plus:

• Larger homes take longer to rent because potential tenants paying $3,000–$4,000/month might just buy instead (especially if rates drop to 5.5%), smaller pool of renters at higher rent prices.
• Higher vacancy risk — that empty month means you’re covering mortgage, taxes, utilities, and HOA out of pocket.
• Investors often budget 5–10% vacancy (one month per year), but bigger homes can sit longer, eating into profits.

Bottom line: Bigger square footage + higher value = higher maintenance, longer vacancies, and bigger refresh hits. It adds up fast in the wrong direction.

The Flip Side: When Keeping It as a Rental Makes Total Sense
If your home checks the boxes — smaller/single-family, good location, low mortgage relative to market rent — it can be a no-brainer to keep. Especially if:

• You bought years ago and locked in a low interest rate.
• The numbers pencil out to positive cash flow.
• Renters often prefer cozy single-family homes over townhomes, condos with shared walls, or multiplexes (which can rent for less).

These properties tend to attract steady tenants and appreciate over time.

It Also Depends on Your Life Stage and Goals
Financially, your age and timeline matter a lot.

• If you’re in your 30s or 40s, moving up to a bigger place: Keeping the old home as a rental often makes sense. You have income coming in, can handle occasional issues, and benefit from long-term appreciation + principal paydown. Hold 15–20+ years, and the returns can be strong.
• Closer to retirement (say 60+): Holding for another 20 years of appreciation might not fit your timeline. You may want the cash now for lifestyle, travel, or other investments. Or, if the property is paid off and generates reliable monthly cash flow after expenses, it could be your “golden goose” for retirement income.

Some folks cash out, invest the proceeds elsewhere, and live off that. Others keep the rental for steady passive income. Both can work — it depends on your full financial picture.

Quick Rule of Thumb: Compare to the Median
A simple gut-check: Is your home priced close to (or below) the city’s median home price? In Portland right now (early 2026), the median is roughly $500,000–$520,000. Homes in that range (or lower) are typically in the sweet spot for first-time buyers — which means they’re also in demand as rentals. The further above the median you go, the tougher it gets to make the rental math work long-term.

Final Thoughts
Deciding to sell or rent comes down to a few big pieces:

• Is the property suitable as a rental? (Size, refresh costs, vacancy risk, cash flow potential)
• Your personal situation (age, retirement timeline, income needs, risk tolerance)
• Market conditions (rates, rents, buyer demand)

There’s no universal right answer — but starting with an honest rentability assessment usually points you in the right direction. If you’re in the Portland Metro areas and thinking through this for your own home, give me a call at 503-515-4499. I don’t plan on retiring anytime soon, so I’m here to chat through your options — no pressure. Thanks for reading! Shawn The Realtor Guy, Portland, Oregon