In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Twinbrook At Mount Air
After a period of owning a rental, landlords may choose to sell their rental. Nesbitt Realty is a full service brokerage and we have successfully and quickly sold many properties at best market value for our former property management clients in Twinbrook At Mount Air.
If you decide you would like to sell your rental unit, Reach out to us and we'll start by preparing a comparative market analysis to help determine what your rental property will likely bring if sold. We'll also prepare estimated proceeds so you know how much you'll actually 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 Twinbrook At Mount Air that 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 a rental investor to sell a property, to reinvest the proceeds in a new rental 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 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 crucial 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 dismissed.
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 an issue lately.
Nevertheless, if you need it, members of our staff have CPDE (certified distressed property expert) training. We can go over the ramifications of a short-sale help you decide if that option is right for you and your rental property.
Do you need know more about this area?
Nesbitt Realty's Guide to Real Estate is a handy resource for anyone who needs to review important real estate information about Twinbrook At Mount Air and nearby communities. The Guide to Real Estate compiles information regarding what has sold and what is for sale, as well as some surprising facts that you might not know. Furthermore, our Guide highlights many of the assets of living in Twinbrook At Mount Air. Of course, most of this is useful for buyers and sellers, but landlords and tenants should also find this data to be quite sobering.
Landlord Reference
a handy source for rental investors in Twinbrook At Mount Air
- Before you lease out your property in Twinbrook At Mount Air
- Collections and evictions
- Communications with the renter
- During tenancy
- End of lease term and what happens when a tenant breaks the lease
- How does the landlord get paid?
- How your property manager handles the association and your community
- How your management company handles utilities
- How Nesbitt finds renters
- Insurance matters for rental investors using our property management
- How Nesbitt Realty & Management manage keys
- Twinbrook At Mount Air owner responsibilities
- Maintenance, repairs & inspections for your rental property in Twinbrook At Mount Air
- 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 renters in Twinbrook At Mount Air