In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Cameron Homes
After a period of owning a property, property owners may decide to sell their rental unit. Nesbitt Realty is a full service brokerage and we have successfully and quickly sold many properties at best market value for our former landlord clients in Cameron Homes.
If you decide you would like to sell your rental property, Email us and we'll start by preparing a comparative market analysis to help figure out what your property can likely fetch if sold. We'll also prepare estimated proceeds so you understand how much you'll actually make after the settlement.
What is a 1031 Tax Exchange and how can it benefit me?
A 1031 Tax Exchange is usually of greatest benefit to real estate investors in Cameron Homes who have held rental property for a longer period of time (more than ten years). Thanks to IRC Section 1031, a properly structured 1031 exchange allows a real estate investor to sell a property, to reinvest the proceeds in a new rental unit and to defer all capital gain taxes. IRC Section 1031 (a)(1) states:
“No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment.”
To understand the powerful protection a 1031 exchange offers, consider the following examples:
- A property owner has a $100,000 capital gain and incurs a tax liability of approximately $35,000 in combined taxes (depreciation recapture, federal and state capital gain taxes) when the property is sold. Only $65,000 remains to reinvest in another property.
Assuming a 25% down payment and a 75% loan-to-value ratio, the seller would only be able to purchase a $260,000 new property.
- If the same investor chose to exchange, however, he or she would be able to reinvest the entire $100,000 of equity in the purchase of $400,000 in real estate, assuming the same down payment and loan-to-value ratios.
As the above example shows, exchanges protect property owners from capital gain taxes as well as facilitating significant portfolio growth and increased return on investment. In order to access the full potential of these benefits, it is critical to have a good working knowledge of the exchange process and the IRC. For instance, an accurate understanding of the key term “like-kind” can reveal possibilities that could have otherwise been overlooked.
What is a short-sale?
A short-sale happens when the seller sells a property for less than what is owed on the property. In the past, because of market contractions, some of our rental investor clients have found themselves in an untenable situation with regards to their rental property. In those cases the best way out was often a short sale. Quite frankly, due to market expansion and inflation, this has not been much of an issue lately.
But, if you need it, members of our staff have CPDE (certified distressed property expert) training. We can go over the consequences of a short-sale help you decide if that choice is right for you and your rental.
Do you want understand more about our area?
Our Guide to Real Estate is a free resource for everyone who hopes to review important real estate information about Cameron Homes and nearby areas. The Guide to Real Estate compiles facts about what has sold and what is currently listed, and a few surprising facts that you might not be aware of. In addition, our Guide has quite a few of the aspects of life in Cameron Homes. Of course, most of this is helpful for purchasers and sellers, but landlords and tenants might also find this data to be somewhat enlightening.
a free source for landlords in Cameron Homes
- Before you lease out your rental in Cameron Homes
- Collections and evictions
- Communications with the renter
- During tenancy
- End of tenancy and what happens when a tenant breaks the lease
- How does the rental investor get paid?
- How your management company handles the association and your community
- How your rental manager handles utilities
- How Nesbitt Realty & Management finds renters
- Insurance matters for landlords using our property management
- How Nesbitt Realty & Management manage keys
- Cameron Homes owner responsibilities
- Maintenance, repairs & inspections for your rental investment in Cameron Homes
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your rental investment
- When landlords don't yet know their new address
- Vetting renters in Cameron Homes