For families whose parent is moving to care

Sell, Rent or Keep: What It Means for Mom's Care

Put in the house, the community's fee sheet and Mom's money. See how many months of care each choice pays for, side by side.

Numbers are estimates, not advice. Tax and Medicaid questions go to a CPA and an elder law attorney. Nothing you type here leaves this page.
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The house

Rough numbers are fine. Everything updates as you type.

$
What it would likely sell for once the repairs below are done.
$
Include any home equity loan. Enter 0 if paid off.
$
Principal and interest. 0 if there is no mortgage.
$
$
Yearly tax and insurance bills divided by 12.
$
Power, water, lawn care, HOA dues, small fixes.

Mom's care and money

Use the community's fee sheet for the monthly fee, including the care level charge.

$
Base rate plus care level, from the fee sheet.
$
Social Security, pension, annuity, long-term care insurance benefits.
$
Bank accounts, CDs, investments she can reach. Note that taking money out of an IRA can mean income tax.
$
Starting guess: about 0.7% of value a month. Change it to what similar homes nearby rent for.

How long the money lasts

Pays for care longest
Sell
List it with a local agent
Estimated net from the sale
$0
Cash at closing, after costs and payoff
Months of care covered
0
    Or sell to a cash buyer, as-is
    $0

    A cash buyer who takes it as-is usually pays 20 to 50 percent below what the house would be worth fixed up, depending on condition. No repairs, no commission, and it usually closes in weeks instead of months.

    Keep in mind
    • The house is gone. If Mom's plans change, there's no home to go back to.
    • Selling usually turns an often-exempt home into countable cash for Medicaid. See the flags below.
    • If you sell, one vetted local agent is enough.
    Pays for care longest
    Rent
    Keep the house, lease it out
    Estimated monthly net from rent
    $0
    After management, vacancy, upkeep, tax, insurance and mortgage
    Months of care covered
    0
      Landlord realities
      • Tenant problems happen: late rent, damage, and evictions take time and money.
      • Repairs don't wait. A roof or an HVAC system can wipe out a year of rent.
      • Someone has to manage it, or pay a manager to.
      • The $250,000 home sale tax exclusion can be lost if it's rented more than about 3 years after she moves out. Ask a CPA.
      Pays for care longest
      Keep
      Leave it empty, or family uses it
      Monthly cost to keep it
      $0
      Tax, insurance, utilities, upkeep and any mortgage payment
      Months until savings run out
      0
        Keep in mind
        • If family lives there, decide in writing who pays the tax, insurance and repairs.
        • An empty house needs someone to check on it regularly.
        • Keeping it can make sense when her income and savings already cover care, or when the family plans to inherit it. See the flags below.

        Flags to check with a professional

        These are questions to ask, not advice. Each one depends on Mom's state and her paperwork.

        How we figured this
        • Monthly gap: the community's monthly fee minus Mom's monthly income. That is what her savings and the house have to cover each month.
        • Sell: price is the home value, or about 10 percent below value if you check the as-is box. Either way this is the house listed on the open market with an agent. From that price we subtract about 6% commission, the repairs (skipped if as-is), about 1.5% closing costs, the mortgage payoff, and about 4 months of carrying costs (tax, insurance, utilities, upkeep and any mortgage payment) while it sells. Months of care = (savings + sale net) divided by the monthly gap.
        • The cash buyer range: a separate estimate, not used in the months of care above. The offer range is 50% to 80% of the home value, which is 20 to 50 percent below what the house would be worth fixed up. From each end we subtract about 1.5% closing costs, one month of carrying costs and the mortgage payoff. No commission and no repairs. The months shown there are (savings + that net) divided by the monthly gap.
        • Rent: rent minus about 10% for a property manager, about 8% for vacancy between tenants, maintenance at about 1% of the home's value per year (divided by 12), property tax and insurance, and the mortgage payment. The tenant is assumed to pay utilities. Months of care = savings divided by (monthly gap minus rent net).
        • Keep: monthly cost = tax, insurance, utilities, upkeep and any mortgage payment. Months until savings run out = savings divided by (monthly gap plus the cost to keep it).
        • Not included: income tax on the sale or the rent, capital gains, rising community fees (they usually go up every year), rising rents, changes in the home's value, one-time move-in or community fees, and interest earned on savings. Real numbers will differ.
        • Expected monthly rent fills in at about 0.7% of the home value a month, rounded to the nearest $25, until you type your own number.
        • The column with the most months is highlighted. That is a math result, not a recommendation, and it uses the listed sale number, not the cash buyer range.

        Numbers are estimates. Want to run your real numbers, with the fee sheet and the house in front of you? Book a free 20-minute call.

        📞 Book a free 20-minute call Already decided to sell? Compare 6 ways to sell

        Ryan never buys houses and never bids. If the family sells, he refers one vetted local agent.