In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Alcova Heights
After a period of owning a property, property owners often choose to sell their rental property. Nesbitt Realty is a full service brokerage and we have successfully and quickly sold many rental properties at best market value for our former property management clients in Alcova Heights.
If you decide you would like to sell your rental property, Contact us and we'll begin by preparing a comparative market analysis to help figure out what your rental property can likely fetch if sold. We'll also prepare estimated proceeds so you know how much you'll really net at 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 Alcova Heights that 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 an investor to sell a property, to reinvest the proceeds in a new property 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:
- An investor 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 landlord 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 investors 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 important to have a comprehensive knowledge of the exchange process and the IRC. For instance, an accurate understanding of the key term “like-kind” can uncover opportunities that might have otherwise been overlooked.
What is a short-sale?
A short-sale occurs 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 real estate investor clients have found themselves in an untenable situation with regards to their rental. 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.
Conversely, 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 option is best for you and your property.
Should you know more about the area?
Our Guide to Real Estate is a handy resource for anyone who wants to learn more about Alcova Heights and neighboring areas. The Guide to Real Estate compiles facts regarding what has sold and what is for sale, and a couple of compelling facts that you may not know. And, our Guide spotlights some elements of residing in Alcova Heights. Definitely, all of this is interesting for buyers and sellers, but landlords and tenants might also find these resources to be very informative.
a useful source for property owners in Alcova Heights
- Before you rent out your property in Alcova Heights
- Collections and evictions
- Communications with the renter
- During the lease term
- End of tenancy and what happens when a tenant breaks the lease
- How does the landlord get paid?
- How your rental manager handles the association and your community
- How your property management company handles utilities
- How Nesbitt finds renters
- Insurance matters for property owners using our rental management
- How Nesbitt Realty & Management manage keys
- Alcova Heights property owner responsibilities
- Maintenance, repairs & inspections for your rental property in Alcova Heights
- 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 tenants in Alcova Heights