In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Westmoreland_terrace
After a period of service as a rental unit, property owners can 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 landlord clients in Westmoreland_terrace.
If you decide you would like to sell your rental property, Contact us and we'll start by preparing a comparative market analysis to help determine what your rental can likely fetch if sold. We'll also prepare estimated proceeds so you understand how much you'll really 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 Westmoreland_terrace that have held 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:
- A landlord 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 demonstrates, exchanges shelter rental 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 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 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 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 a concern lately.
On the other hand, if you need it, members of our staff have CPDE (certified distressed property expert) training. We can explain to you the consequences of a short-sale help you decide if that choice is right for you and your rental.
Do you need know more about our local real estate market?
Our Guide to Real Estate is a handy tool for everyone who wants to learn more about Westmoreland_terrace and surrounding communities. The Guide to Real Estate compiles information regarding what has sold and what is for sale, and many shocking facts that you might not be aware of. Also, our Guide has many of the elements of life in Westmoreland_terrace. Certainly, most of this is useful for buyers and sellers, but rental investors and renters will likely also find this information to be somewhat informative.
Landlord Reference
a free archive for landlords in Westmoreland_terrace
- Before you move a tenant into your rental property in Westmoreland_terrace
- Collections and evictions
- Communications with the renter
- During the lease term
- End of lease term and what happens when a renter breaks the lease
- How does the rental investor get paid?
- How your property management company handles the association and your community
- How your rental manager handles utilities
- How Nesbitt finds renters
- Insurance matters for property owners using our property management
- How Nesbitt Realty & Management manage keys
- Westmoreland_terrace property owner responsibilities
- Maintenance, repairs & inspections for your rental investment in Westmoreland_terrace
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your rental property
- When property owners don't yet know their new address
- Vetting tenants in Westmoreland_terrace