This option minimizes taxes while allowing more flexibility to reinvest without 1031 restrictions.Option C: Sell Now Without the ExclusionSelling immediately means paying capital gains tax on the entire gain, including depreciation recapture, making this the least tax-efficient option.Additional Considerations:HELOC or Cash-Out Refi: If you want to keep the rental while accessing equity for your retirement home, consider a HELOC or cash-out refinance instead of selling.Estate Planning: If you hold the property until passing it to heirs, they receive a step-up in basis, eliminating capital gains taxes entirely.For tax efficiency, staying two more years allows you to partially exclude capital gains, while a 1031 exchange defers taxes if you plan to continue investing in rental properties.This post does not create a CPA-Client relationship.

Year over year we've seen impressive appreciation rates and often times investors are able to re-sell at a profit a year later with minimal to no work.

Seller Financing / Sub-To: Take over payments or negotiate terms with sellers to minimize upfront costs.  

Just be sure they have a strong plan in place to market your properties quickly and that you thoroughly vet their tenant screening process to ensure minimal vacancy and high-quality tenants.Ultimately, finding the right PM should make your life easier, not harder.

Minimal changes to effect common entrances, no major shifts in load bearing, easy plumbing changes for wherever the new kitchen would be... it's a lot of boxes to check. 

All in one closing so the costs are minimal. 

Transitioning from Individual Deals to a Scalable ModelScaling up your distressed property portfolio means more than just increasing the number of deals; it’s about creating effective, repeatable systems that minimize risks while maximizing returns.

I want to take advantage of growth if possible, but also want to minimize taxes and fees (penalties).

If you think ahead, you can minimize recapture with the right tax planning.So what is recapture?

Being proactive ensures you’re always a step ahead, minimizing risks and keeping your business running smoothly.Example: Imagine you implement an outdated tenant screening policy that inadvertently violates a new anti-discrimination law.