Overseas PCS Assignments: Should You Keep or Sell Your U.S. Home?

Should you keep or sell your U.S. home for an overseas PCS assignment?

Quick Answer: For overseas PCS assignments lasting 3-4 years, keeping your U.S. home as a rental often builds more wealth than selling—if you have 20%+ equity, strong rental demand in your current market, and can secure professional property management for 8-10% of monthly rent. The strategic question isn't whether you can manage from overseas (you can't, but property managers can), but whether the rental income covers your PITI plus management costs while your property appreciates.

Discuss your PCS situation: Book a free call at https://askweldonhobbs.com (USAFA grad, 20+ years helping military families nationwide)

In my 20+ years helping hundreds of families navigate overseas PCS assignments nationwide, I've worked as a Certified Financial Coach coordinating with CPAs and property managers to map wealth outcomes before families sell properties they should keep. I'm Weldon Hobbs, and I've seen the same pattern: families who sell before OCONUS assignments often return stateside 3-4 years later to find their previous market has appreciated 15-25%, and they've lost both that equity growth and their favorable interest rate.

The Overseas Assignment Timeline Advantage

Most OCONUS assignments last 3-4 years—long enough for meaningful equity accumulation through appreciation and mortgage pay-down. Unlike 1-2 year stateside PCS moves where the rental property equation is marginal, overseas tours give your property time to build substantial wealth.

The Rental Market Analysis

Your current market determines viability. Military-heavy markets (near bases with high PCS volume) often have strong rental demand. Civilian markets may have lower demand but potentially higher rental rates. Research: average days on rental market, typical rent ranges for your property type, and vacancy rates in your neighborhood.

Property Management Requirements

You cannot self-manage from overseas. Professional property management is non-negotiable. Calculate: 8-10% of monthly rent for management fees, 1-month rent for tenant placement, maintenance coordination fees. Quality property management pays for itself through tenant screening, maintenance handling, and lease enforcement.

Navigating overseas PCS assignments requires both strategic clarity and understanding YOUR timeline. I've helped hundreds of families through this transition nationwide. Book a free 30-minute Transition Strategy Call to discuss your specific situation—I'll help you apply this framework and connect you with an expert in your market.

The Return-Stateside Calculation

Many families overlook the return scenario. After 3-4 years overseas, you'll PCS back to a U.S. assignment. If you kept your property, you have three options: continue renting while buying at your new station (if you have VA loan entitlement), sell with substantial appreciation, or move back in if your new assignment is nearby. If you sold before going overseas, you're starting from zero in whatever market you return to.

The Tax Advantage Consideration

Military members on OCONUS assignments may qualify for tax benefits that make rental property income more favorable. Consult your CPA before making decisions, but the combination of depreciation deductions, potential foreign earned income exclusion on military pay, and rental property tax treatment can improve your wealth outcome.

Ready to Apply This to Your Situation?

While this framework gives you the strategic foundation, your specific circumstances deserve personalized guidance. Whether you're facing overseas PCS assignments anywhere across the nation, I'm here to help you think through the complete strategy.

Here's how the free 30-minute Transition Strategy Call works: We'll identify which of the 12 major life transitions you're navigating, map out how to optimize for wealth outcomes by coordinating with your CPA/attorney/financial advisor, then figure out if real estate makes sense right now—and if so, exactly how to execute.

If you're not in Colorado Springs, I'll connect you with a transition-focused real estate professional in your market through my curated nationwide network.

Book Your Free Transition Strategy Call → https://askweldonhobbs.com

Key Takeaways:

• Overseas assignments (3-4 years) provide timeline advantage for rental property wealth building.
• Professional property management (8-10% fees) is non-negotiable for OCONUS—you cannot self-manage.
• Keep requires 20%+ equity and rental income covering PITI plus management costs.
• Returning stateside with existing property gives you options (rent, sell, or occupy).

Sources:

• [1] Department of Defense - Overseas Assignment Procedures
• [2] IRS - Military Tax Benefits for Overseas Service
• [3] Military.com - OCONUS Property Management Guide