Quantcast Tom Presler's Blogs | Locations

Selling Your Investment Property - What You Need to Know

Being a landlord can be taxing – literally! So what do you do, and what are your options if you want to sell your investment property? Here’s a few tips.

Your Financial Plan

Whatever the reason for selling, the first and most important step is outlining a financial plan.

Meet with your tax advisor to get the ball rolling and determine what you want to do with the proceeds of the sale. No investor should ever sell a property without a full understanding of the financial impact.

If the property is a multi-family unit, make sure the rental income is bringing in market rate for the neighborhood. This income helps determine the value of the property.

Cut Down on Expenses

When selling your investment property, you want to cut your expenses. If you are selling a multi-family properly, cutting expenses and increasing the cash flow is a key factor investors look for. If you are selling a SFR, cutting your expenses is just a good idea. 

  • Reduce unnecessary landscaping and decrease watering time
  • Cut back on, or eliminate advertising
  • Look for ways to decrease insurance costs (e.g. higher deductible)
  • Pare down outside vendor work.

Ultimately, if you’re selling your investment property and not rolling it over into a new property or doing a 1031 exchange, tax liability will more than likely be the largest expense.