All Forum Posts by: William C.

I have an update on the situation. After some back and forth between the current tenants and some realtors, there are some new factors in play:

The original selling scenario is unchanged. But the rental situation has an update...

The current tenants would like to re-new for another year. They are open to a rent increase to $2,300 (up from $2,150). They want some security. Although the feel is this will be a 1 year play for them. We are likely looking for new tenants after them (vacancy, turnover costs, etc). This scenario improves cashflow, and will do so even more if we refinance (currently at 4.125%, but there has been talk of that we could knock off one whole percentage point in our situation).

Of course with the closing costs to be paid in a refinance scenario (est. around $10,000), we would be semi-committing ourselves to a more long term hold scenario. The breakeven point is estimated at around 4 years (this does not factor in the rental income and potential home appreciation).

We are now leaning towards holding, continuing to be landlords (through the PM company of course). I'm looking for someone out there that can poke some holes in my thought process. Maybe uncover some important factors I may be missing. I am here to learn! If you need more information or numbers, just say so. Thank you all.

Helpful. Thanks. I am located in Oregon, but the investment property is located in Florida. My research has said the title costs would be deductible nationwide. Thanks for the answer and verification.

I am potentially selling an investment property in Florida. The county the home is located in is negotiable on who pays for the title search and insurance costs. Some realtors have stated it is a county where the "seller picks the title company and the seller pays for the costs." Other realtors have stated the opposite. Since it is negotiable, realtors have noted most buyers will build the title costs into their offer if they are expected to cover them. So they would reduce their offer by the approximate amount of the title fees.

The question I have is, as a pure investment property and as a straight up sale (no 1031 exchange), are the title costs tax deductible from the net proceeds of the sale? I understand any opinions given here are just opinions, and will not be taken as tax advice. Thank you all in advance.

I will be reaching out via your inbox to take you up on the price evaluation. Thank you.

Thank you for the post. I am interested in selling. Going through the realtor vetting process currently (no decision has been made). The home is in a HOA community. Weekly rentals are not allowed. Shortest lease length allowed is 6 months.

Long-time follower of the forum (and Podcast listener). First time poster on here. I would like to present my personal situation and get some opinions on how people would proceed (also why). See below and thank you in advance.

Current Holding: Single-family home in Sarasota, Florida that was purchased brand new in 2017. It has rented out successfully with good tenants for the past 3 years. It is managed by a property management company, as I am located a few time zones away. The home was purchased for $315k. 20% down. Interest rate of 4.125%. Altogether mortgage is around $1600. The current tenants pay $2150 for rent. The margins are narrow, but generally the property cash-flows positively (a major repair would obviously change this fact).

Some Scenarios I've Considered (I know I'm missing plenty):

Keep the current tenants. Renew for another year. Continue being a landlord (via the prop. mgmt company). Play the risk game of a major repair (newer house). Continue gaining equity in the home (we all hope). Possibly refinance to get the mortgage amount reduced (not sure how much better our rate would get from 4.125% being that it is an investment property).

Sell. Ballpark sales would be in the $360k range. Net would be around $70k. We could 1031 into a different property that is closer to home. One we could manage ourselves. But we happen to live in a market where cash-flowing properties are few (Oregon).

Very interested to hear what people have to say and to learn! Once again, here to answer any additional questions. Thank you!