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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6
Mr.P, , Arizona
Thu Sep 6, 2007
Great question,
http://www.Investmentre.com
Allows you to explore how different numbers impact your ROI, careful with the " current market value"
1 vote
Joshua Slayb…, Other Pro, West Chester, PA
Thu Sep 6, 2007
Penny-

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
Paul Renton &…, , Atlanta, GA
Fri Aug 31, 2007
Penny,

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.
Web Reference:  http://TeamRenton.com
1 vote
Sylvia Barry,…, Agent, Marin, CA
Thu Aug 30, 2007
I discovered a Rent vs Own calculator, which might help in the right decision on the direciton you want to go : http://www.sylviasellsmarin.com/Is+It+Better+to+Buy+or+Rent+…
1 vote
Sal Salvatie…, , 33180
Sat Sep 8, 2007
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
Web Reference:  http://www.bayview1031.com
0 votes
Pam Winterba…, Agent, Danville, VA
Thu Aug 30, 2007
Penny,

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
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