Should You Sell or Keep Your Aggie Student’s House After Graduation?

The TAMU Parent Dilemma

If you bought a home in Bryan or College Station for your son or daughter while they attended Texas A&M, you probably made a smart move. Instead of throwing money away on rent, you built equity — and likely saw the home appreciate over those four years.

But now that graduation’s come and gone, you’re facing the big question:
Should you sell the house… or keep it as a rental?

As a real estate investor and agent here in Bryan/College Station, I talk with a lot of Aggie parents in this exact situation. There’s no one-size-fits-all answer, but there is a smart way to think about it.

Let’s walk through your three main options — and how to decide what’s best for your situation.

Option 1: Sell and Cash Out

For many parents, selling feels like the simplest option. Your student’s moved on, the house has served its purpose, and you’d like to tap into the equity you’ve built.

That can be a great choice — but don’t forget about taxes. Because this wasn’t your primary residence, you’ll likely pay capital gains tax on the profit. For most people, that’s 15–20% federally, plus state taxes if applicable.

When to sell:

• You’d rather simplify than manage tenants.
• You need the equity for other goals.
• You’re okay paying capital gains taxes.
  

If you’re selling a tenant-occupied property, check out my video on “How to Sell a Rented House for Maximum Dollar” — Video Link

Option 2: Do a 1031 Exchange

If you’re not ready to give up on real estate altogether, the 1031 exchange can be a smart play.

A 1031 lets you defer capital gains taxes by rolling your profit into another investment property. In other words, you can sell your TAMU house and use the proceeds to buy another rental — without paying taxes right away.

The catch? You have to follow strict timelines:

• 45 days to identify your next property.
• 180 days to close on it.
  

Here in Bryan/College Station, I’ve helped clients 1031 into single-family homes, duplexes, and even small multi-units that cash flow better than their original property.

When to 1031:

• You want to stay invested in real estate.
• You’d like to upgrade to a higher-performing property.
• You’re okay with some paperwork and deadlines to defer taxes.

Option 3: Keep It as a Rental

My personal favorite option — and the one most overlooked by Aggie parents — is simply keeping the property as a rental.

Why? Because you already know it rents well. Your son or daughter likely had roommates paying rent, so you’ve proven demand exists. Plus, student housing in Bryan/College Station has historically stayed strong year-round.

Many parents hesitate because of management concerns — who handles the tenants now that your student’s gone? That’s where professionals like my team at Schwartz Realty Group come in. We can handle:

• Marketing the property
• Tenant screening
• Lease signing
• Move-in/move-out coordination
  

It’s the same system we use for our personal rental portfolio.

Let’s look at the math. If your PITI (principal, interest, taxes, insurance) is $1,800/month and market rent is $2,200/month, that’s a $400 gross spread. After setting aside:

• $150 for maintenance
• 5% for vacancy ($110)
• 8% for management ($176) You’d still net around $160/month in cash flow — plus you’re building equity and benefiting from appreciation.
  

Since 1990, Bryan/College Station home prices have appreciated 4.96% annually. On a $300,000 home, that’s nearly $15,000 per year in value growth. Add in principal paydown, and the long-term wealth impact becomes substantial.

When to hold:

• You want steady appreciation and tax benefits.
• You don’t need the cash right now.
  

The Bottom Line
There’s no wrong choice here — only the one that best aligns with your financial goals.

If you want simplicity, sell. If you want to reinvest, 1031 exchange. If you want long-term wealth, keep and rent.

If you’d like help running the actual numbers on your property — cash flow, appreciation, or potential 1031 scenarios — my team and I can walk you through it.