In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Manors_at_stonegate
After a period of service as a rental unit, landlords often decide to sell their rental property. Nesbitt Realty is a full service brokerage and we have successfully and quickly sold many rentals at best market value for our former property management clients in Manors_at_stonegate.
If you decide you would like to sell your rental property, Phone us and we'll begin by preparing a comparative market analysis to help predict what your rental will likely fetch if sold. We'll also prepare estimated proceeds so you know how much you'll really take away from the settlement.
What is a 1031 Tax Exchange and how can it benefit me?
A 1031 Tax Exchange is usually of greatest benefit to landlords in Manors_at_stonegate who have held rental unit for a longer period of time (more than ten years). Thanks to IRC Section 1031, a properly structured 1031 exchange allows an investor to sell a property, to reinvest the proceeds in a new rental 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 property owner 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 demonstrates, 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 opportunities 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 landlord 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 a concern lately.
But, if you need it, members of our staff have CPDE (certified distressed property expert) training. We can explain to you the ramifications of a short-sale help you decide if that option is best for you and your rental unit.
Should you understand more about our local real estate market?
Nesbitt Realty's Guide to Real Estate is a handy tool for everyone who hopes to review important real estate information about Manors_at_stonegate and nearby areas. The Guide to Real Estate provides facts regarding what has sold and what is on the market, as well as a few shocking facts that you might not know. Not to mention, our Guide spotlights quite a few of the aspects of residing in Manors_at_stonegate. As might be expected, most of this is interesting for buyers and sellers, but landlords and tenants will likely also find this information to be quite edifying.
Landlord Reference
a handy source for landlords in Manors_at_stonegate
- Before you move a tenant into your investment in Manors_at_stonegate
- Collections and evictions
- Communications with the tenant
- During the lease term
- End of tenancy and what happens when a renter breaks the lease
- How does the landlord get paid?
- How your rental manager handles the association and your community
- How your rental manager handles utilities
- How Nesbitt Realty finds tenants
- Insurance matters for rental investors using our rental management
- How Nesbitt Realty & Management manage keys
- Manors_at_stonegate rental investor responsibilities
- Maintenance, repairs & inspections for your property in Manors_at_stonegate
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your property
- When landlords don't yet know their new address
- Vetting renters in Manors_at_stonegate