BiggerPockets Real Estate Podcast Should I Sell My 4% Interest Rate Rental Property? ($300K in Equity!)
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Dec 11, 2024 In this engaging discussion, Henry Washington, a savvy real estate investor, dives into the dilemmas of rental property management. He explores whether to sell or refinance a low-performing rental while sitting on substantial home equity. With insights on avoiding the pitfalls of 1031 exchanges and enhancing cash flow through rental strategy adjustments, like converting properties to mid-term rentals, Henry delivers valuable wisdom. Listeners will also uncover innovative ways to use home equity without refinancing, making this a must-listen for investors!
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Potential Net from Sale
- Consider netting around $700,000 from selling after costs.
- A 1031 exchange is a possibility to defer capital gains taxes.
1031 Exchanges and Alternatives
- 1031 exchanges can be stressful due to tight timelines and restrictions.
- Consider cost segregation studies as an alternative tax strategy when selling.
Past 1031 Experience
- Dave Meyer recounts a successful 1031 exchange in 2018 due to a confident market.
- He expresses less confidence in the current market conditions.