DDD: Should I Sell My Rental? An Analysis of 4 Rental Properties and Two Types of 1031 Exchanges

In this Drinks and Deep Dives show, we focused on how today’s market affects the decision to sell a property and trade up to a bigger and better one. We looked at income and rent growth, walked through four scenarios to see if it makes sense to sell, and talked about how to navigate a 1031 exchange. Is now a good time to sell your Denver home or trade up? Watch the video to find out.

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About Chris,

Hey Everyone, I'm Chris Lopez, host of the Denver Real Estate Investing Podcast and Founder of Envision Advisors.

I built the Envision Advisors with the mission of helping others build long term wealth through investment properties in Denver and Colorado Springs. I wanted to build a unique brokerage that's a one-stop shop to help you reach your cash flow goals. We have paired our investor-friendly realtors alongside our portfolio analysis division to create a roadmap for your investment journey.

Click the link below to schedule your free Colorado real estate investment consultation to start creating your personalized plan!

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0:00 Intro
1:41 Comparison of income vs rents
3:56 Does it still make sense to buy, sell or trade up?
6:35 What are the tax consequences on the properties you are thinking about selling
9:10 Owner occupied duplex in Denver- Equity opportunity costs
17:19 Importance of understanding tax details on your property before selling it
19:04 California SFH - Equity opportunity costs
22:16 Max cash-out refi option on California SFH
22:47 Sell it -New Rental Assumption on California SFH
25:40 Townhouse in Denver - Equity opportunity costs
26:24 Keep it option on the townhouse in Denver
29:34 Completely paid off property SFH in Denver - Equity opportunity costs
31:53 Best option for return on equity on SFH in Denver
34:40 Main show takeaways
35:35 How to go out in the market and achieve this
37:15 1031 exchange vs reverse 1031 exchange
41:05 Now is the time to do a cash-out refi, HELOC or selling and trading up

[bd]

Excellent analysis and key takeaways, Chris! I would love to see more analysis on cash-out refis and when it does or does not make sense. In the video, you mentioned negative cash flow of $1, 000 per month on a refi. That return would be before reinvesting the capital, right? It would be helpful to hear the gray zones (say $100 or $200 negative cash flow) after reinvesting the cash where it still might make sense to move forward with the refi. Thank you!