First time selling a nonconforming triplex - help!

[Becca Pearson]

We’ve been renting out a single family home for the last year that is renovated to be a triplex. We’ve made a great return so far but the city has asked us to move back in to continue renting out the ADUs, so we’re opting to sell instead and need it sold by the end of October. This is our first time selling a property so I have a lot of questions:

1. Any recommendations on who to sell through? There are services like Homey and Open Door that claim to charge less than 3% but I’m skeptical they’ll be as good as a regular realtor.

2. In order to avoid capital gains tax, do we need to have the property under an llc to utilize the 1031 exchange?

3. All 3 units are fully occupied right now, so though we will ask tenants to keep their space clean for showings, the rooms won’t be properly staged. Should I worry about the appeal of the house when it’s being occupied? Also, how soon do you recommend I let the tenants know that we’ll be selling the house? 

Any other advice for a first time seller would be greatly appreciated!

[Bryan Noth]

@Becca Pearson  

As long as you utilize the proper channels for the 1031 exchange you should not need the property to be in an LLC. @Dave Foster might be able to clarify but I have seen plenty of 1031 exchanges from personal names as well as from LLCs.  

Once you know for sure you are selling and have a listing date set with your realtor I would notify the tenants and discuss how you will coordinate showings.  Some agents and sellers opt to only allow showings once under contract, your agent may have some input here as well.  If it's occupied with tenants the next buyer/owner will likely inherit the leases (depending on your specific state law) so there is an expectation it won't be perfectly staged.  

Good luck!