Time for exchanging your rental property??

Investment Property: What can I do in this market??

Many people who have invested in property are probably wondering to themselves: “What the heck should I do now??” Does the current Real Estate market allow any opportunity to make, or reason to make, changes to my investment property portfolio? In many cases, the answer can be “yes”!! And executing a 1031 tax-deferred exchange now could provide some definite advantages.

Owners of rental homes or multi-unit rental properties could find this an excellent time to exchange into different property investments and accomplish a variety of investment goals:
1)Portfolio diversification: numerous smaller properties, and properties in other areas
2)Exchange non-income-producing raw land for rental units that can create positive cash flow.
3)Exchange a fully depreciated property into a higher valued property that can be depreciated further.

And if you’re tired of managing your rental properties after all these years, exchanging into a Tenant-in-Common investment (TIC) can relieve you of a lot of work, improve your cash flow, and diversify you into other geographical areas that offer better property appreciation.

So instead of hunkering down and just doing nothing because the Real Estate market is going through a transition, you can take advantage of the situation to make some very beneficial, and maybe overdue, changes to your investment property portfolio.

Let me know what you think. And comment with your opinions for other readers.

Regards
Tom