Keep, Refi, or Sell: What to Do with an Inherited Rental Property
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- Опубліковано 17 тра 2024
- Find out if you should keep, refinance, or sell your inherited rental property in MINUTES with Property Llama: go.propertyllama.com/bp/
You’ve just inherited a paid-off property…but what should you do with it? Keep it and collect a rent check each month, refinance and reinvest, or sell the property for a HUGE gain? While it might seem as if you’re playing with house money, you don’t want to miss out on an enormous opportunity to improve your portfolio and grow your long-term wealth!
Chris Lopez is here to walk you through this big decision start-to-finish. Using a real-life example of inheriting a house, he crunches the numbers and compares several options to determine which path offers the highest possible return. Depending on the property, your financial goals, and the lifestyle you wish to live, one option reigns supreme. Tune in to find out what it is, and learn about the tax rule that could help you save six figures on capital gains!
Make the RIGHT investing decision today with help from Property Llama: go.propertyllama.com/bp/
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10 Simple Ways to Minimize or Avoid Capital Gains Taxes In Real Estate: www.biggerpockets.com/blog/ca...
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How to Keep MORE of Your Inheritance From the IRS (Avoid THESE Tax Mistakes): www.biggerpockets.com/blog/mo...
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00:00 Keep, Refi, or Sell?
00:51 Sponsor: Property Llama!
01:41 Option 1. Keep It
06:02 Option 2. Refinance
07:57 Save Six Figures in Taxes?!
09:26 Option 3. Sell It!
13:05 Where to Invest Your Profits
18:33 Compare Your Portfolio!
I love these Keep, Refi, or Sell series 👍
Great info. Final numbers don't take into account rental property deductions and tax savings which should be added into the numbers so they aren't inflated
I just don’t want 1/3 of my income taxed by Uncle Sam 🤣🤣🤣
Agreed. Interest income is taxed at ordinary income rates and should be included in evaluation of that option.
I try to keep a balance in communicating concepts and potential strategies while keeping it simple. The taxes on CF get very complex depending on the state and the individual's tax bracket and situation. It becomes a rabbit hole! Yes, you're right, but it's a UA-cam video that hopefully spurs ideas and then a person will sit down for their own individual deep dive.
Love these real life examples. Great to start a conversation and share with friends who I know have inherited a property recently. Thank you
Thank you! I am going to end up in this exact situation
Why are larger cap rates more risky vs lower cap rates are more conservative.. anyone explain , I would think , larger cap rates would be more valuable?
The local cap rate is determined by the market. If the asset is a higher headache or higher risk, then the investor needs to be compensated.
Any time you can sell a property capital gains tax free - it's probably a good idea to do it!
I think this was a no-brainer 3 years ago. Today, I'm not so sure. It's a good idea in some cases, and not a good idea in others. Where will you re-deploy the capital? Especially in cases where long-term fixed rate debt of less than 3% is locked in, maybe keeping it trumps the tax-free cap gains you can realize today.
Why did you use 6% commission & fees for $1.3m sales price but 8% for $825k sales price?
The 8% fees is 6% commission and 2% for repairs.
Assuming a $300k remodel, there shouldn't be any inspection items! The 8% is for commission and some inspection concessions.