In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Rotonda
After a period of owning a property, landlords can decide to sell their property. 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 Rotonda.
If you decide you would like to sell your rental, Call us and we'll start by preparing a comparative market analysis to help determine what your property can probably bring 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 Rotonda that have held rental 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 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 shelter 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 comprehensive 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 property owner clients have found themselves in an untenable situation with regards to their 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.
However, 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.
Do you want know more about our area?
Our Guide to Real Estate is a helpful tool for everyone who wants to learn more about Rotonda and nearby communities. The Guide to Real Estate includes information regarding what has sold and what is for sale, as well as many surprising facts that you may not be aware of. In addition, our Guide has many of the aspects of living in Rotonda. Naturally, most of this is useful for purchasers and sellers, but property owners and tenants should also find this information to be quite sobering.
a useful reference for rental investors in Rotonda
- Before you move a tenant into your property in Rotonda
- Collections and evictions
- Communications with the tenant
- During tenancy
- End of lease term and what happens when a tenant breaks the lease
- How does the owner get paid?
- How your management company handles the association and your community
- How your management company handles utilities
- How Nesbitt Realty finds renters
- Insurance matters for property owners using our property management
- How Nesbitt Realty & Management manage keys
- Rotonda owner responsibilities
- Maintenance, repairs & inspections for your rental property in Rotonda
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your rental investment
- When owners don't yet know their new address
- Vetting renters in Rotonda