Question Details

Penny, Home Seller in California

Should I hold my rental property or trade it?

Asked by Penny, California Thu Aug 30, 2007

Is there any software I can use to quickly calculate whether I should hold my rental property or do a 1031 tax deferred exchange?

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Great question,
Allows you to explore how different numbers impact your ROI, careful with the " current market value"
1 vote Thank Flag Link Thu Sep 6, 2007
Mr.P, Other/Just Looking in Arizona

I don't think this is as easy and running numbers through a calculator. This decision has a lot to do with how much appreciation your property experienced, how much more you can realistically expect, how management intensive the property is, etc.

In addition, you'll want to consider what kind of options you have for replacement property/properties. Can you find something that is easier to manage and provides better or more stable income? In this case, it may be wise to capitalize on the appreciation you've seen in your current rental and move the money (through the 1031 exchange ) into an asset that has more room to grow.
1 vote Thank Flag Link Thu Sep 6, 2007

run your business plan and ask is this property doing waht you want it to do? What is the rntal market going to do in the next few years compared to your other option. Speak to a top producing agent local to your property they can help as your decision will invlove one or more transactions. You need to do what is bet for you and your future but make it an educated decision.
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1 vote Thank Flag Link Fri Aug 31, 2007
I discovered a Rent vs Own calculator, which might help in the right decision on the direciton you want to go :…
1 vote Thank Flag Link Thu Aug 30, 2007
Sylvia Barry,…, Real Estate Pro in Novato, CA
I don't know if there is any software to calculate that question. That being said allow me to share this with you; if you feel comfortable with your cash flow from this property then it maybe a keeper. However if you want to grow your portfollio, increase your cashflow, increase your basis, maybe relocate your investment, change the type of investment (residential for small commercial for example) then applying a 1031Exchange certainly would be important. I would also reccomend that you have your team in place to make this type of transaction a success.

Sal Salvatierra, EMS, CEA
Business Development Director, Bayview 1031
786 290.9911
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0 votes Thank Flag Link Sat Sep 8, 2007

In addition to software I could contact my CPA to get the up shot and down shot on holding vs a 1031 exchange.
0 votes Thank Flag Link Thu Aug 30, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
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