In San Diego, California, a 1031 exchange has a timeframe where you have 45 days to identify a replacement property after selling your old property and 180 days to close escrow on the new property to complete the exchange;essentially, the entire process must be finished within 180 days from the sale of your original property.

How much rent you should charge depends on what the leading market rents are in the neighborhood of your property as well as how your unit compares to those units. As it stands, California law does not have limits on how much you can raise rent after a vacancy (unless in a State of Emergency, then the most you can raise above the previous rent level is 10%). It is best do do an analysis of the going rents in the neighborhood of the property and price the unit accordingly. If you are going to be preparing the property for sale, it is best to get the most amount possible for the vacant unit. If you are planning to continue to hold long term, it may be advantageous to charge slightly under what the market can bear in order to attract a long term tenant and avoid turnover. ​ If you are contemplating giving a rent increase, it is also advantageous to understand what else is available for rent. If you are $300 below the next lowest rent rate in your neighborhood, you can still implement a rent increase and have tenants that are happy to stay. We provide free custom rental surveys upon request, and can help you determine how much rent you should charge for your vacancy. Call 858-876-5701 or email Christina.ACIApartments@gmail.com to request a rent survey for your building.

5% + 3.2% CPI as of May 2024 = 8.2% total annual rent increase.

Property management fees in San Diego typically range from 7–12% of the monthly rent, with a minimum monthly fee.

Here are some typical operating expenses for multifamily properties: Property management fees: A typical expense for multifamily owners, these fees can range from 5% of total revenue on smaller properties to 2.75% on larger ones. Utilities: The third largest operating expense for multifamily properties. Maintenance: One of the top three costs for most multifamily communities nationwide. Marketing and advertising: Can be one of the largest or smallest operating expenses, depending on the size of the property, the number of renters needed, and the turnover rate. Homeowners Association (HOA) fees: If the rental is located in a building or subdivision, the owner will likely have to pay HOA fees. Insurance: A major driver of rising costs. Property taxes: A fixed expense that property owners can anticipate and plan for. Legal fees: Another operating expense for rental properties

By reinvesting the proceeds from a property sale into a Qualified Opportunity Fund (QOF) within 180 days, investors can defer tax on the original gain until December 31, 2026, or until the investment is sold, whichever comes first.

A residential single family rental or 2-4 unit rental will need 25% of the equity to remain in the property, so anything that exceeds 25% will be yours to take out. ​ A 5+ unit apartment building’s refinance requirements are largely based on the current income. The property needs to cover a debt-service ratio of 1.2%. Given that owners run their buildings differently, this could be anywhere from 50%-75% cash out, depending on the strength of the income.

There are 4 value indicators to determine the value of a 5+ unit apartment building, including: GRM Cap Rate Price per unit Price per square foot If you understand what 3-5 comps in the subject property’s neighborhood are selling for in each of these categories, take the average of the comps and apply these value indicators to your building and the current income performance. You will receive a value for each value indicator, if you average these 4 values, you will have roughly the value of the building. Note: As a broker, we understand what neighborhoods are selling for and if buyers will be willing to pay more or less for certain income and property conditions, but if you want a rough idea, this is a simplified version of how to keep track of your property value. For a 2-4 Unit buildings, appraisers do not consider the income of the building, and will be subject simply to the price per unit and price per square foot of the most comparable sales within the closest proximity to the subject property. For a single family rental, appraisers will also look at comparable sales and neglect any rental income. ​ Feel free to request from us comparable sales for your property.

A 1031 exchange, also known as a like-kind exchange, is a tax-advantaged real estate investing strategy that allows investors to defer capital gains taxes when exchanging one investment property for another: How it works Investors can exchange an investment property for another property of similar or greater value, and defer paying capital gains taxes on the profit from the sale. When it applies A 1031 exchange can only be used for real property, not personal or intangible property. When to recognize gain If the exchange also includes other property or money, the investor must recognize a gain to the extent of the other property and money received. When to complete Investors must complete the exchange within a specific timeframe to receive the tax benefits. The most common type of 1031 exchange is a delayed exchange, where the investor sells the original property before acquiring the replacement property.

Raising rents is healthy. Not only for your income and the value of the building, but yes, also for your tenants. Think about your life expenses. Would you rather have small, incremental increases in your life expenses or all of the sudden, all at once, have your expenses double or triple? Which could you handle better? This is the same for your tenants. If you keep your rents low because you think it's helping your tenants afford to live in San Diego, it's actually doing the opposite. If you raise the rents slowly over time you are preparing your tenants for San Diego prices, so they can keep up with the changing times and not have the rug ripped out from underneath them if something happens to you or the property.

Yes, we have a long list of preferred partners we work with and our clients work with. This includes lenders, contractors, handymen, inspectors, builders, property managers and everything in between. ​ Feel free to reach out for any recommendations!

A reverse 1031 exchange is a real estate transaction that allows an investor to buy a replacement property before selling their existing property

Escrow Period: Single Family Rentals: 30 Days 2-4 Unit Rentals: 30-60 Days 5+ Apartment Buildings: 60 Days Physical Due Diligence Contingency: 14-21 Days Loan Contingency: Single Family Rentals: 17-21 Days 2-4 Unit Rentals: 17-21 Days 5+ Apartment Buildings: 21-30 Days Appraisal Contingency: Single Family Rentals: 17-21 Days 2-4 Unit Rentals: 17-21 Days 5+ Apartment Buildgs: 21-30 Days

**See question “How much is my building worth?” run those figures, and subtract your loan amount to see how much equity you have. Otherwise, contact a trusted broker to calculate it for you. Note: You can get a complimentary property evaluation through the link below

It is common for long term owners to keep their rents below what the market can bare, this makes it easy to be a landlord, with minimal vacancies and turnover. Marketing a vacancy when it comes up is a breeze since word of mouth from other tenants brings in good tenants without having to post an ad. This is all well and good, but by not charging tenants market rate (or at least close to market rate), you are giving away that extra income every month and your income is degrading the value of your building. Not to mention, tenants are likely not notifying you of items that need repaired in fear that their rents might be raised, so your building is also suffering. ​ It is common for owners of 10+ years to have a delta of leading market rents and their rents by 30%. With rent control limiting how much you can raise rents, you will not be able to catch up, and doing a 1031 exchange into a new building (or different asset class, such as NNN or DST) allows you to obtain that extra 30% income you were leaving on the table. You may be happy that your tenants are happy, but how do your heirs feel about their inheritance going to your tenants?

Whether or not you should fix up your property depends on your goals. Generally, it's a good idea to make your property the most appealing possible, part of that is the broker’s job, and we have a few tricks up our sleeve to net you the most amount possible for your building, regardless of the condition. Contact us to see if we can net you more than what it technically should sell for (we’ve been known to do that)

Rent control, in short, is a limit on how much landlords can raise rents as well as puts stipulations on evictions. The current law states that owners can raise rents 5% + Consumer Price Index. Owners cannot evict a tenant who has resided at the property longer than 1 year without “just cause” (breaking items in the contractual lease), unless: Owner is to do “substantial renovations” to the building, requiring permits that take longer than 30 days to complete (no cosmetic rehabs) Owner can give termination of tenancy if they, or a family member, are to occupy the unit themselves. Properties built less than 15 years ago are not subject to rent control Owner-occupied properties where the other unit is in the same building and the tenant started tenancy after the owner was already living there, is also not subject to rent control.

A step-up in basis is when an asset is passed onto the beneficiary (such as when a spouse passes away), the property value is reappraised at the time of death. For example, if a property was purchased in 1970 for $100,000 and now is worth $1,000,000, the capital gains on the $900,000 equity will be wiped clear since at the time of death the property was reappraised at $1,000,000.

Depreciation is the perceived degrading quality of real property as it is used over time, which can be deducted from the owner’s taxes. For multifamily property in San Diego, you can calculate how much ‘depreciation’ you can use as a tax deduction by taking the assessed value at the time of purchase and dividing that by 27.5 years. Therefore, a $1,000,000 property will be able to deduct $36,363 from your taxable income.

You can only guarantee that you obtain the best price possible from marketing the property to all of the potential buyers. This is done through marketing and listing the property for sale with a proven marketing campaign with a competent broker. Listing the property creates: price certainty, competition and buyer urgency, driving up the price past what an off-market sale could yield. ​ With that being said, some situations warrant ease of sale over squeezing every extra penny from a property, so it’s up to you and your family to decide which is best for you. ACI has 42 years of vetted buyers actively pursuing properties, so if ease of sale is most important then that can be accomplished.

Yes, you can use a 1031 exchange to sell multiple properties and buy multiple replacement properties. However, there are some things to keep in mind: Timelines You have 45 days after the first sale to identify replacement properties, and 180 days to complete the entire transaction. If you sell multiple properties, the clock starts when the first property sells. Identification rules There are three different identification rules: Three-Property Rule: Investors can identify up to three properties regardless of their fair market value. 200% Rule: Investors can identify more than three properties, but the total value of the properties can't exceed 200% of the relinquished property's value. 95% Rule: Investors must purchase at least 95 percent of the value identified.

A cash-out refinance is a type of mortgage refinancing that allows you to convert your home equity into cash: How it works You take out a new mortgage for more than your existing mortgage balance, use the proceeds to pay off your old mortgage, and receive the remaining funds as cash. What you can use the funds for You can use the cash for anything you want, such as home renovations, debt consolidation, paying for major expenses, or covering unexpected financial needs. Benefits Cash-out refinances can give you access to lower interest rates than most other lending options, including credit cards. Considerations A cash-out refinance increases your monthly payment and mortgage loan balance. The new loan from a cash-out refinance may come with a different interest rate and loan term. Mortgage insurance Conventional cash-out refinances don't require private mortgage insurance (PMI), but FHA cash-out refinances do. VA cash-out refinances don't require mortgage insurance, but you'll have to pay the VA funding fee.

Yes, in most cases with rental property sales, buyers do not see the interior of a property until there is an accepted offer. If you have a good relationship with the tenants and they are willing to cooperate and allow showings, this would be a perk, but 75% of the time prospective buyers cannot see interiors until they are in escrow.

ACI has conducted 4,500+ transactions over the past 35 years with countless clients. With 10-15 active brokers at any given time, we have a brokerage full of clients who will be buying, selling or exchanging this year and the next years to come. At ACI we share what our clients' needs are, so if someone else has a client with a situation that is a match to your needs, we will certainly connect the two. Otherwise, we have active direct mail and email campaigns monthly and weekly, so when it’s the right time we will be doing everything in our power to source you the best deal possible for you

f you do a 1031 exchange, you can utilize the full amount of equity to purchase the exchange property, enabling you to afford more than you otherwise could have. The downside to doing a cash-out refinance is that you will not be able to tap into the full equity, since some needs to remain in the property for lending purposes and the appraisal on the refinance will likely come in shy of what a buyer would pay. The benefit of the cash-out refinance is that you get to keep the property and buy additional assets, allowing them both to appreciate over time. You can have your broker run both scenarios to see which would be a better option for you.

From an income viewpoint, whether or not you should sell your rental property and exchange into something else depends on your ROE, your current return on your equity. This is a math formula that can be done efficiently by a broker. You can compare what your current ROE is and see what it would look like in another property. A 10 year analysis will show what the different scenarios look like down the line, and it becomes evident that scaling into larger buildings (more rental units) will always result in building more wealth. From an income viewpoint: What is $100 rent increase x 1 rental unit? $1,200 annually What is $100 rent increase x 3 rental units? $3,600 annually From an equity viewpoint: Not to mention, if you have a $500,000 asset appreciating 5% annually, you have an additional $25,000 at the end of the year in equity. If you have a $1,000,000 asset appreciating 5% annually, you have an additional $50,000 in equity. This compounds over the next 10 years, putting you significantly more ahead in the larger property than the smaller one. From a tax viewpoint: A $500,000 asset can provide upwards of $18,181 in tax write-offs, whereas a $1,000,000 asset can provide $36,363+ in tax write-offs.

Yes, you can perform a 1031 tax deferred exchange into another state, meaning you can sell an investment property in one state and use the proceeds to purchase a "like-kind" replacement property in a different state, as long as both properties meet the IRS's 1031 exchange requirements; essentially, all 50 states recognize 1031 exchanges, although some may have specific state-level regulations to be aware of

In California, a landlord must give tenants 30 days notice before increasing rent if the increase is 10% or less, and 90 days notice if the rent increase is more than 10%.

Pick the right broker for you Gather all the data about the property requested from the broker, collaborate with the broker to decide on the best marketing price for the property based on your goals + sign the listing agreement. Marketing material will be put together, as well as professional photographs of the property, and drone videos when applicable The broker manages the listing, following up on calls, presenting and organizing offers and negotiating the best candidates to yield you the highest price Once there is an accepted offer, escrow is opened (your broker will have recommendations for escrow and title officers), your job is to sign disclosures and provide access to the building for the buyer to do their physical due diligence Your broker will keep you updated on the buyer’s progress and contingencies will be removed according to the negotiated contract until the final close of escrow! Note: If you are conducting a 1031 exchange, you will also be opening an accommodator account during the escrow period, so that proceeds from the sale can go directly into the accommodator account and held for the next purchase. Your broker will know the best accommodators in town.

You can sell real property without paying the capital gains tax by conducting a “1031 tax deferred exchange,” which is rolling the gains from the subject property into another property of equal or greater value.

A cash-out refinance is a good option for owners who would like to keep their original property but put some of their equity to work in another property (or use the equity for other life purposes).

Deciding whether to sell your rental property is a very personal decision and should be discussed among all of those involved, including heirs. Here are few reasons investors opt for selling (or exchanging): You have a step-up in tax basis You are out of depreciation and your taxes are higher Your heirs don’t want to inherit a second job and may want to sell anyways You are ready to retire from managing a rental property (or managing the manager) Your property has deferred maintenance that’s needs tended to You have enough equity to 1031 exchange to a better location The loan term may be coming due Your rents are below market and your equity could give you a better return in another investment

In San Diego, California, a 1031 exchange has a timeframe where you have 45 days to identify a replacement property after selling your old property and 180 days to close escrow on the new property to complete the exchange;essentially, the entire process must be finished within 180 days from the sale of your original property.

How much rent you should charge depends on what the leading market rents are in the neighborhood of your property as well as how your unit compares to those units. As it stands, California law does not have limits on how much you can raise rent after a vacancy (unless in a State of Emergency, then the most you can raise above the previous rent level is 10%). It is best do do an analysis of the going rents in the neighborhood of the property and price the unit accordingly. If you are going to be preparing the property for sale, it is best to get the most amount possible for the vacant unit. If you are planning to continue to hold long term, it may be advantageous to charge slightly under what the market can bear in order to attract a long term tenant and avoid turnover. ​ If you are contemplating giving a rent increase, it is also advantageous to understand what else is available for rent. If you are $300 below the next lowest rent rate in your neighborhood, you can still implement a rent increase and have tenants that are happy to stay. We provide free custom rental surveys upon request, and can help you determine how much rent you should charge for your vacancy. Call 858-876-5701 or email Christina.ACIApartments@gmail.com to request a rent survey for your building.

5% + 3.2% CPI as of May 2024 = 8.2% total annual rent increase.

Property management fees in San Diego typically range from 7–12% of the monthly rent, with a minimum monthly fee.

Here are some typical operating expenses for multifamily properties: Property management fees: A typical expense for multifamily owners, these fees can range from 5% of total revenue on smaller properties to 2.75% on larger ones. Utilities: The third largest operating expense for multifamily properties. Maintenance: One of the top three costs for most multifamily communities nationwide. Marketing and advertising: Can be one of the largest or smallest operating expenses, depending on the size of the property, the number of renters needed, and the turnover rate. Homeowners Association (HOA) fees: If the rental is located in a building or subdivision, the owner will likely have to pay HOA fees. Insurance: A major driver of rising costs. Property taxes: A fixed expense that property owners can anticipate and plan for. Legal fees: Another operating expense for rental properties

By reinvesting the proceeds from a property sale into a Qualified Opportunity Fund (QOF) within 180 days, investors can defer tax on the original gain until December 31, 2026, or until the investment is sold, whichever comes first.

A residential single family rental or 2-4 unit rental will need 25% of the equity to remain in the property, so anything that exceeds 25% will be yours to take out. ​ A 5+ unit apartment building’s refinance requirements are largely based on the current income. The property needs to cover a debt-service ratio of 1.2%. Given that owners run their buildings differently, this could be anywhere from 50%-75% cash out, depending on the strength of the income.

There are 4 value indicators to determine the value of a 5+ unit apartment building, including: GRM Cap Rate Price per unit Price per square foot If you understand what 3-5 comps in the subject property’s neighborhood are selling for in each of these categories, take the average of the comps and apply these value indicators to your building and the current income performance. You will receive a value for each value indicator, if you average these 4 values, you will have roughly the value of the building. Note: As a broker, we understand what neighborhoods are selling for and if buyers will be willing to pay more or less for certain income and property conditions, but if you want a rough idea, this is a simplified version of how to keep track of your property value. For a 2-4 Unit buildings, appraisers do not consider the income of the building, and will be subject simply to the price per unit and price per square foot of the most comparable sales within the closest proximity to the subject property. For a single family rental, appraisers will also look at comparable sales and neglect any rental income. ​ Feel free to request from us comparable sales for your property.

A 1031 exchange, also known as a like-kind exchange, is a tax-advantaged real estate investing strategy that allows investors to defer capital gains taxes when exchanging one investment property for another: How it works Investors can exchange an investment property for another property of similar or greater value, and defer paying capital gains taxes on the profit from the sale. When it applies A 1031 exchange can only be used for real property, not personal or intangible property. When to recognize gain If the exchange also includes other property or money, the investor must recognize a gain to the extent of the other property and money received. When to complete Investors must complete the exchange within a specific timeframe to receive the tax benefits. The most common type of 1031 exchange is a delayed exchange, where the investor sells the original property before acquiring the replacement property.

Raising rents is healthy. Not only for your income and the value of the building, but yes, also for your tenants. Think about your life expenses. Would you rather have small, incremental increases in your life expenses or all of the sudden, all at once, have your expenses double or triple? Which could you handle better? This is the same for your tenants. If you keep your rents low because you think it's helping your tenants afford to live in San Diego, it's actually doing the opposite. If you raise the rents slowly over time you are preparing your tenants for San Diego prices, so they can keep up with the changing times and not have the rug ripped out from underneath them if something happens to you or the property.

Yes, we have a long list of preferred partners we work with and our clients work with. This includes lenders, contractors, handymen, inspectors, builders, property managers and everything in between. ​ Feel free to reach out for any recommendations!

A reverse 1031 exchange is a real estate transaction that allows an investor to buy a replacement property before selling their existing property

Escrow Period: Single Family Rentals: 30 Days 2-4 Unit Rentals: 30-60 Days 5+ Apartment Buildings: 60 Days Physical Due Diligence Contingency: 14-21 Days Loan Contingency: Single Family Rentals: 17-21 Days 2-4 Unit Rentals: 17-21 Days 5+ Apartment Buildings: 21-30 Days Appraisal Contingency: Single Family Rentals: 17-21 Days 2-4 Unit Rentals: 17-21 Days 5+ Apartment Buildgs: 21-30 Days

**See question “How much is my building worth?” run those figures, and subtract your loan amount to see how much equity you have. Otherwise, contact a trusted broker to calculate it for you. Note: You can get a complimentary property evaluation through the link below

It is common for long term owners to keep their rents below what the market can bare, this makes it easy to be a landlord, with minimal vacancies and turnover. Marketing a vacancy when it comes up is a breeze since word of mouth from other tenants brings in good tenants without having to post an ad. This is all well and good, but by not charging tenants market rate (or at least close to market rate), you are giving away that extra income every month and your income is degrading the value of your building. Not to mention, tenants are likely not notifying you of items that need repaired in fear that their rents might be raised, so your building is also suffering. ​ It is common for owners of 10+ years to have a delta of leading market rents and their rents by 30%. With rent control limiting how much you can raise rents, you will not be able to catch up, and doing a 1031 exchange into a new building (or different asset class, such as NNN or DST) allows you to obtain that extra 30% income you were leaving on the table. You may be happy that your tenants are happy, but how do your heirs feel about their inheritance going to your tenants?

Whether or not you should fix up your property depends on your goals. Generally, it's a good idea to make your property the most appealing possible, part of that is the broker’s job, and we have a few tricks up our sleeve to net you the most amount possible for your building, regardless of the condition. Contact us to see if we can net you more than what it technically should sell for (we’ve been known to do that)

Rent control, in short, is a limit on how much landlords can raise rents as well as puts stipulations on evictions. The current law states that owners can raise rents 5% + Consumer Price Index. Owners cannot evict a tenant who has resided at the property longer than 1 year without “just cause” (breaking items in the contractual lease), unless: Owner is to do “substantial renovations” to the building, requiring permits that take longer than 30 days to complete (no cosmetic rehabs) Owner can give termination of tenancy if they, or a family member, are to occupy the unit themselves. Properties built less than 15 years ago are not subject to rent control Owner-occupied properties where the other unit is in the same building and the tenant started tenancy after the owner was already living there, is also not subject to rent control.

A step-up in basis is when an asset is passed onto the beneficiary (such as when a spouse passes away), the property value is reappraised at the time of death. For example, if a property was purchased in 1970 for $100,000 and now is worth $1,000,000, the capital gains on the $900,000 equity will be wiped clear since at the time of death the property was reappraised at $1,000,000.

Depreciation is the perceived degrading quality of real property as it is used over time, which can be deducted from the owner’s taxes. For multifamily property in San Diego, you can calculate how much ‘depreciation’ you can use as a tax deduction by taking the assessed value at the time of purchase and dividing that by 27.5 years. Therefore, a $1,000,000 property will be able to deduct $36,363 from your taxable income.

You can only guarantee that you obtain the best price possible from marketing the property to all of the potential buyers. This is done through marketing and listing the property for sale with a proven marketing campaign with a competent broker. Listing the property creates: price certainty, competition and buyer urgency, driving up the price past what an off-market sale could yield. ​ With that being said, some situations warrant ease of sale over squeezing every extra penny from a property, so it’s up to you and your family to decide which is best for you. ACI has 42 years of vetted buyers actively pursuing properties, so if ease of sale is most important then that can be accomplished.

Yes, you can use a 1031 exchange to sell multiple properties and buy multiple replacement properties. However, there are some things to keep in mind: Timelines You have 45 days after the first sale to identify replacement properties, and 180 days to complete the entire transaction. If you sell multiple properties, the clock starts when the first property sells. Identification rules There are three different identification rules: Three-Property Rule: Investors can identify up to three properties regardless of their fair market value. 200% Rule: Investors can identify more than three properties, but the total value of the properties can't exceed 200% of the relinquished property's value. 95% Rule: Investors must purchase at least 95 percent of the value identified.

A cash-out refinance is a type of mortgage refinancing that allows you to convert your home equity into cash: How it works You take out a new mortgage for more than your existing mortgage balance, use the proceeds to pay off your old mortgage, and receive the remaining funds as cash. What you can use the funds for You can use the cash for anything you want, such as home renovations, debt consolidation, paying for major expenses, or covering unexpected financial needs. Benefits Cash-out refinances can give you access to lower interest rates than most other lending options, including credit cards. Considerations A cash-out refinance increases your monthly payment and mortgage loan balance. The new loan from a cash-out refinance may come with a different interest rate and loan term. Mortgage insurance Conventional cash-out refinances don't require private mortgage insurance (PMI), but FHA cash-out refinances do. VA cash-out refinances don't require mortgage insurance, but you'll have to pay the VA funding fee.

Yes, in most cases with rental property sales, buyers do not see the interior of a property until there is an accepted offer. If you have a good relationship with the tenants and they are willing to cooperate and allow showings, this would be a perk, but 75% of the time prospective buyers cannot see interiors until they are in escrow.

ACI has conducted 4,500+ transactions over the past 35 years with countless clients. With 10-15 active brokers at any given time, we have a brokerage full of clients who will be buying, selling or exchanging this year and the next years to come. At ACI we share what our clients' needs are, so if someone else has a client with a situation that is a match to your needs, we will certainly connect the two. Otherwise, we have active direct mail and email campaigns monthly and weekly, so when it’s the right time we will be doing everything in our power to source you the best deal possible for you

f you do a 1031 exchange, you can utilize the full amount of equity to purchase the exchange property, enabling you to afford more than you otherwise could have. The downside to doing a cash-out refinance is that you will not be able to tap into the full equity, since some needs to remain in the property for lending purposes and the appraisal on the refinance will likely come in shy of what a buyer would pay. The benefit of the cash-out refinance is that you get to keep the property and buy additional assets, allowing them both to appreciate over time. You can have your broker run both scenarios to see which would be a better option for you.

From an income viewpoint, whether or not you should sell your rental property and exchange into something else depends on your ROE, your current return on your equity. This is a math formula that can be done efficiently by a broker. You can compare what your current ROE is and see what it would look like in another property. A 10 year analysis will show what the different scenarios look like down the line, and it becomes evident that scaling into larger buildings (more rental units) will always result in building more wealth. From an income viewpoint: What is $100 rent increase x 1 rental unit? $1,200 annually What is $100 rent increase x 3 rental units? $3,600 annually From an equity viewpoint: Not to mention, if you have a $500,000 asset appreciating 5% annually, you have an additional $25,000 at the end of the year in equity. If you have a $1,000,000 asset appreciating 5% annually, you have an additional $50,000 in equity. This compounds over the next 10 years, putting you significantly more ahead in the larger property than the smaller one. From a tax viewpoint: A $500,000 asset can provide upwards of $18,181 in tax write-offs, whereas a $1,000,000 asset can provide $36,363+ in tax write-offs.

Yes, you can perform a 1031 tax deferred exchange into another state, meaning you can sell an investment property in one state and use the proceeds to purchase a "like-kind" replacement property in a different state, as long as both properties meet the IRS's 1031 exchange requirements; essentially, all 50 states recognize 1031 exchanges, although some may have specific state-level regulations to be aware of

In California, a landlord must give tenants 30 days notice before increasing rent if the increase is 10% or less, and 90 days notice if the rent increase is more than 10%.

Pick the right broker for you Gather all the data about the property requested from the broker, collaborate with the broker to decide on the best marketing price for the property based on your goals + sign the listing agreement. Marketing material will be put together, as well as professional photographs of the property, and drone videos when applicable The broker manages the listing, following up on calls, presenting and organizing offers and negotiating the best candidates to yield you the highest price Once there is an accepted offer, escrow is opened (your broker will have recommendations for escrow and title officers), your job is to sign disclosures and provide access to the building for the buyer to do their physical due diligence Your broker will keep you updated on the buyer’s progress and contingencies will be removed according to the negotiated contract until the final close of escrow! Note: If you are conducting a 1031 exchange, you will also be opening an accommodator account during the escrow period, so that proceeds from the sale can go directly into the accommodator account and held for the next purchase. Your broker will know the best accommodators in town.

You can sell real property without paying the capital gains tax by conducting a “1031 tax deferred exchange,” which is rolling the gains from the subject property into another property of equal or greater value.

A cash-out refinance is a good option for owners who would like to keep their original property but put some of their equity to work in another property (or use the equity for other life purposes).

Deciding whether to sell your rental property is a very personal decision and should be discussed among all of those involved, including heirs. Here are few reasons investors opt for selling (or exchanging): You have a step-up in tax basis You are out of depreciation and your taxes are higher Your heirs don’t want to inherit a second job and may want to sell anyways You are ready to retire from managing a rental property (or managing the manager) Your property has deferred maintenance that’s needs tended to You have enough equity to 1031 exchange to a better location The loan term may be coming due Your rents are below market and your equity could give you a better return in another investment