Having a rental property can be a great investment, but tenants can pose a pressing problem if you’re looking to sell. Not only can it end in a messy breakup, but you can also experience an unwanted tax hit if you don’t do things right.
Luckily, Roofstock can assist, allowing people to list and sell their homes easily and cost-effectively.
“We have built state-of-the-art technology that’s revolutionizing the way real estate is bought and sold,” the company states on its website. “From our proprietary Neighborhood Ratings and comprehensive property certification, we enable anyone to invest with the tools, information and services they need to be successful.”
That said, it’s never been easier to list a property. As the top marketplace for buying and selling investment properties, Roofstock has established a global network of hundreds of thousands of real estate investors.
Here are some benefits when using Roofstock to sell your rental property:
- You’ll be able to keep tenants in your home and earn rental income through closing.
- You’ll be marketing to a network of purchasers specifically interested in purchasing investment properties.
- Roofstock’s competitive fee is only 3 percent of the sale price or $2,500, whichever is greater.
What’s more, Roofstock focuses on selling single-family rental homes.
The big question: Why list with Roofstock? As mentioned, you can sell your property with tenants in place — you won’t need to disrupt their quiet enjoyment of the property with stagings, open houses or showings, or wait until the tenancy has ended. And you can keep collecting rents until the day you close.
Here’s how Roofstock works:
Roofstock takes you through the sale process in an easy, painless way. Here’s a rundown of that procedure:
- Submit your listing: With Roofstock, you’ll receive a free valuation report when inputting your listing in the system.
- Decide on a price: The Roofstock team will work with you to set a fair price that’s advantageous to both you as the seller and its network of investors, based on the valuation report.
- Hassle-free due diligence: Roofstock minimizes your burden by gathering inspection reports, providing financial metrics and market area information, and filing current lease information.
- Receive offers: Review offers from your inbox — directly online.
- Close: Roofstock oversees the entire closing process.
A Resource for your 1031 Exchange
As a recent college graduate who isn’t a homeowner or an investor, I decided to watch Roofstock’s webinar, “Selling Your Rental Property Through Roofstock.” What I learned, impressively, is Roofstock’s overarching benefits with the 1031 Exchange, otherwise called a “Lifetime Exchange” and named after Section 1031 of the Internal Revenue Code.
“It allows an investor to defer paying capital gains taxes on an investment property when it’s sold,” said Zach Evanish, Roofstock’s director of client advisory services, in the webinar. “This allows you to defer the profit gained by the sale of that property.”
In other words, if you sell a property for $50,000 more than you bought it for, you would usually have to pay capital gains tax on that $50,000. However, with an exchange, you can defer the $50,000 and roll it into your next property. Some restrictions apply — including important timing constraints. An experienced accountant, enrolled agent or tax attorney can provide further guidance.
Conveniently, Roofstock is equipped to address the needs of sellers and investors with its 1031 Exchange. The Roofstock marketplace features listings of available investment properties that will make finding a like-kind property within the time constraints imposed by Section 1031 easy.
“We have investors right now who are selling properties through our marketplace and exchanging them into four, five or six. Generally, this is for investors who build up some equity,” Evanish said.
Even if you’re just thinking about selling, it’s never too early to start planning. Learn more about selling on Roofstock here.
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