PCS Orders from Eglin AFB: Should You Rent Out Your House or Sell It?
You just got your orders. Excitement mixed with that pit-in-your-stomach feeling as you stare at your house and think: "What the hell do I do with this thing?"
If you bought near Eglin AFB, Hurlburt Field, or Duke Field in the last couple years, you're probably sitting on a property worth about what you paid for it—maybe a little more, maybe a little less. Not enough equity to throw a party about, but enough to make you wonder: Should I become a landlord from Virginia Beach or San Antonio, or just cut my losses and sell?
I've been helping military families navigate this exact question since 2007 here in Fort Walton Beach, Niceville, and Shalimar. Let me walk you through the real numbers—the ones nobody talks about at the going-away party.
The Hard Truth About Transaction Costs
Here's what selling costs you in the Fort Walton Beach area:
6% realtor commission (unless you call me—1% listing, but we'll get to that)
Closing costs: 1-2% of sale price
Repairs/concessions: Usually another 1-2%
On a $415,000 house, you're looking at $25,000-$35,000 in total costs to walk away. That's your down payment, eaten by transaction fees.
The situation: You got orders. Your Fort Walton Beach house is worth roughly what you paid.
Your desire: Keep the equity you worked for while doing what's right for your family.
The conflict: Selling costs thousands. Renting means becoming a long-distance landlord.
The change: You run the actual numbers instead of guessing.
The result: A decision based on math, not emotion.
Let's Talk About Renting Near Eglin AFB
What Your House Will Actually Rent For
Based on current Okaloosa County rental comps (December 2025):
3/2 house, ~1,660 sqft, built 2020-2023: $2,400-$2,500/month
4/2 house, similar age: $2,600-$2,800/month
These numbers are solid because military renters keep our market stable. Eglin, Hurlburt, and Duke Field aren't going anywhere, and neither is the demand for quality rentals.
The Real Monthly Math (Buckle Up)
Let's assume you bought a $415,000 house in 2023 with 20% down ($83,000) at 6.7% interest:
Let's assume you bought a $415,000 house in 2023 with 20% down ($83,000) at 6.7% interest:
| Income/Expense | Monthly Amount |
|---|---|
| Rental Income | $2,450 |
| Vacancy Loss (5%) | -$123 |
| Property Management (10%) | -$245 |
| Maintenance (1% of rent) | -$25 |
| Net Operating Income | $2,057 |
| Mortgage Payment (P&I) | -$2,142 |
| Property Taxes | -$333 |
| Insurance | -$250 |
| Monthly Cash Flow | -$668 |
Yes, you read that right. You'll lose $600-$700 every month for the first several years.
"Wait, Why Would I Do That?"
Because wealth building isn't always about monthly cash flow. It's about net worth over time.
The 10-Year Comparison: Rent vs. T-Bills
Let's say you have that $83,000 sitting in your account. You could:
Option A: Sell now, take the loss, invest in Treasury Bills at 3.5%
Option B: Rent the property, feed it $668/month, let appreciation and loan paydown work
Here's what happens:
This table compares your Total Net Profit (Equity + Cash Flow - Initial $83k) versus putting that $83k into Treasury Bills.
| Year | Scenario A: RENT & HOLD (Total Profit) |
Scenario B: T-BILLS (Total Profit) |
Winner |
|---|---|---|---|
| Year 1 | -$14,350 (Loss) | +$2,905 | T-Bills |
| Year 5 | +$31,700 | +$15,578 | Real Estate |
| Year 10 | +$113,400 | +$34,080 | Real Estate |
What's Happening Here?
Your tenant is buying your house for you: Every payment chips away at that $332,000 loan
Appreciation compounds: 3% annual appreciation (conservative for our market) turns $415k into ~$557k in 10 years
Tax benefits: You can depreciate the property and write off losses against other income
The Military-Specific Considerations
BAH Makes Your Property More Attractive
Renters with Eglin AFB, Hurlburt Field, or Duke Field BAH are gold. They:
Pay on time (direct deposit)
Stay 2-3 years typically
Take care of properties (usually)
Don't nickel-and-dime you over repairs
The 3-Year Rule
If you think there's any chance you're coming back to the Fort Walton Beach area in your next assignment cycle, renting becomes more attractive. Coming back to a paid-down mortgage in a market you know? That's money.
Property Management Is Non-Negotiable
Do NOT try to manage this from Ramstein or Yokota. A good local property manager (10% of rent) will:
Handle 3am toilet emergencies
Screen tenants properly
Conduct inspections
Process evictions if needed (rare with military tenants)
It's worth every penny of that $245/month.
When Selling Actually Makes Sense
Sometimes renting isn't the play:
Sell If:
You can't afford the -$668/month for 5-7 years
You're retiring from the military and buying your forever home elsewhere
The house has serious issues (foundation, roof, HVAC on last legs)
You're drowning in debt and need immediate liquidity
Your marriage is ending and you need a clean break
The 1% Commission Advantage
Here's where I stop being the impartial educator and start being the guy trying to earn your business:
Traditional agents charge 6% to sell your house. On $415,000, that's $24,900.
I charge 1% to list. That's $4,150.
Saving $20,750 changes the math considerably. Suddenly selling doesn't automatically mean losing your down payment. It might mean breaking even or walking away with a few thousand.
Been doing this since 2007 in Fort Walton Beach, specializing in military moves. If you decide selling is the right call, let's talk about keeping more of your equity.
The Maintenance Reality Check
That "1% of rent" for maintenance in the analysis? That's $25/month or $300/year.
Let's be honest—that's dangerously low. One HVAC repair in Florida blows that budget for three years.
Industry standard is 1% of property value annually: $4,150/year or $345/month.
If we recalculate with realistic maintenance:
Monthly Cash Flow: -$988 (not -$668)
This is why I'm telling you straight: You need reserves. Plan for $10,000-$15,000 sitting in an account tagged "rental property emergencies." Because they will happen.
Tax Benefits Nobody Mentions
When you rent, you can deduct:
Mortgage interest
Property taxes
Insurance
Repairs and maintenance
Property management fees
Depreciation (spread over 27.5 years)
On a $415,000 property, that's ~$15,000/year in depreciation alone. If you're in the 22% tax bracket, that's a $3,300 annual tax savings.
Suddenly that -$988/month becomes more like -$713/month after tax benefits. Still negative, but less painful.
(Disclaimer: I'm not a CPA. Talk to one. Seriously.)
My Recommendation Based on 18 Years in This Market
Rent It If:
You can genuinely afford to lose $700-1,000/month for 5-7 years
You have 12-18 months of expenses saved (emergencies + carrying costs)
You think you might return to the Emerald Coast
You believe in the long-term Florida real estate market
You want to build wealth through real estate
Sell It If:
You need liquidity now
You can't handle the monthly negative cash flow
You're not returning to Florida
The thought of tenants and property management makes you break out in hives
You want simplicity over potential long-term profit
The Fort Walton Beach Advantage
Our market has benefits other military towns don't:
Three major installations: Eglin AFB, Hurlburt Field, Duke Field = steady tenant demand
Special operations command: Higher-ranked personnel = more reliable tenants with higher BAH
Tourism economy: Backup option for short-term rentals if long-term doesn't work (different discussion entirely)
Appreciating market: Unlike some military towns that stagnate, we've shown consistent 3-4% annual growth
The Bottom Line
If you bought near Eglin in 2022-2023, you're not in a great position to sell—transaction costs will eat most or all of your equity.
But renting isn't free money either. It's a long-term wealth-building strategy that requires feeding the beast for years before it starts feeding you.
Run your actual numbers:
What's your mortgage payment?
What are your taxes and insurance?
What can you realistically rent for?
Can you afford -$700 to -$1,000/month?
If the answer to that last question is yes, and you can stomach the landlord role, renting wins over 10 years by a significant margin.
If the answer is no, call me. Let's talk about how to sell without leaving $20,000 on your front lawn in agent commissions.
