Risk Management
Exit Strategy Calculator
Know your exit before you enter. Calculate your break-even sale price after closing costs, agent commissions, taxes, and repairs.
Property Details
$
Selling Costs
Tax & Basis
Break-Even Sale Price
$327,957
Requires -3.89%/yr appreciation to break even in 5 yrs
Net Profit After Tax (5 yr exit)
$123,000
Property Value
$463,710
Exit Cost Breakdown
| Projected Sale Price | $463,710 |
| - Agent Commission (5%) | $23,185 |
| - Closing Costs (1.5%) | $6,956 |
| - Transfer Tax (0.5%) | $2,319 |
| - Repairs / Staging | $5,000 |
| = Total Selling Costs | $37,460 |
| = Net Sale Proceeds | $426,250 |
| - Mortgage Payoff | $300,000 |
| = Walk-Away Amount | $126,250 |
| - Estimated Capital Gains Tax | $3,250 |
| = Net After Tax | $123,000 |
Exit Windows by Year
| Year | Property Value | Selling Costs | Mortgage | Net Proceeds | Profit |
|---|---|---|---|---|---|
| Y1 | $412,000 | $33,840 | $296,647 | $81,513 | -$18,487 |
| Y2 | $424,360 | $34,705 | $293,069 | $96,586 | -$3,414 |
| Y3 | $437,091 | $35,596 | $289,252 | $112,243 | $12,243 |
| Y4 | $450,204 | $36,514 | $285,179 | $128,511 | $27,773 |
| Y5 | $463,710 | $37,460 | $280,833 | $145,417 | $42,167 |
Exit Strategy Principles
Know Your Number
Your break-even is the minimum sale price to walk away whole. Below this, you're writing a check to sell.
The 7% Rule
Typical selling costs run 5-7% of sale price. Agent commissions alone are usually 5-6%. Always factor these in.
Hold Period Matters
Short holds magnify selling costs. The longer you hold, the more appreciation absorbs the exit friction.
Tax-Aware Exits
Capital gains tax can take 15-25% of your profit. Consider a 1031 exchange to defer taxes into the next deal.
Plan your next move
Use the full Property Analyzer to find deals with clear exit paths and strong cash flow.