Are you looking to grow your real estate portfolio and build wealth faster? There’s a tax “loophole” that allows you to sell your property and roll your equity (and profits) into a bigger and better rental property—all while deferring thousands of dollars in taxes. Stay tuned to learn how to use a 1031 exchange to your advantage!
Welcome back to another Rookie Reply! Today, Ashley and Tony are answering some of your recent questions from the BiggerPockets Forums. After discussing 1031 exchanges and “like-kind” properties, we’ll help an investor determine if they should sell or rent a property that, despite the potential to bring in decent monthly cash flow, has some costly capital expenditures looming. Next, is it better to stabilize a rental property by making home improvements that help you raise rent or use the same funds to buy another property? We’ll dive into the numbers and show you which option gives you the highest return!
Ashley:
Let’s get your questions answered. I’m Ashley Kehr and I’m here with Tony J Robinson
Tony:
And welcome to the Rookie Podcast where every week, three times a week, we bring you the inspiration, motivation, and stories you need to hear to kickstart your investing journey. And today we’re jumping back into the BiggerPockets forum to get all of your questions answered. Now, Ricky’s the forum is the absolute best place for you to go to quickly get all of your real estate investing questions answered by experts like me, Ashley, and so many more. Alright, so today we’re going to discuss 10 31 exchanges and how to property utilize them if you should sell or rent your property. And finally, how to decide if you should focus on rehabbing or growing your portfolio. So let’s get into today’s show.
Ashley:
Okay, let’s start with our first question. It starts off with my mother lives in her primary residence in Florida and owns a second property there. She would like to sell that second property and is looking…