In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Whitlers Creek Ii
After a period of service as a rental, landlords may 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 Whitlers Creek Ii.
If you decide you would like to sell your property, Reach out to us and we'll begin by preparing a comparative market analysis to help figure out what your rental can probably 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 landlords in Whitlers Creek Ii who have owned rental unit for a longer period of time (more than ten years). Thanks to IRC Section 1031, a properly structured 1031 exchange allows a property owner 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 rental 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 real estate 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 demonstrates, exchanges protect landlords 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 rental investor clients have found themselves in an untenable situation with regards to their rental unit. 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.
But even so, 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 property.
Should you know more about our community?
Nesbitt Realty's Guide to Real Estate is a free tool for anyone who wants to find out more about Whitlers Creek Ii and neighboring areas. The Guide to Real Estate provides data about what has sold and what is currently listed, as well as a couple of shocking facts that you may not know. Furthermore, our Guide features some elements of residing in Whitlers Creek Ii. Naturally, most of this is helpful for purchasers and sellers, but rental investors and tenants will also find the facts to be very enlightening.
a free reference for rental investors in Whitlers Creek Ii
- Before you move a tenant into your rental property in Whitlers Creek Ii
- Collections and evictions
- Communications with the renter
- During tenancy
- End of tenancy and what happens when a tenant breaks the lease
- How does the property owner get paid?
- How your management company handles the association and your community
- How your property management company handles utilities
- How Nesbitt finds tenants
- Insurance matters for landlords using our property management
- How Nesbitt Realty & Management manage keys
- Whitlers Creek Ii property owner responsibilities
- Maintenance, repairs & inspections for your property in Whitlers Creek Ii
- 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 Whitlers Creek Ii