Tips for Liquidating Your Rental Portfolio

If you’re looking to free up some cash or invest in other projects there are three tips I recommend that you consider.

  1. Tax Implications – Be sure to consult with your tax preparer or CPA to understand what this means in terms of capital gains taxes. They will be able to help you evaluate to minimize your tax liability as well as accomplish your goal. If liquidation means that you may have to pay capital gains you may want to consider a 1031 exchange.
  2. Property/Portfolio Value – If you have SFH’s, condos or townhomes (and sometimes full duplex’) you will want to work with a local real estate broker or agent to understand the value of the property. These types of properties could be marketed to a retail buyer or an investor but it’s important that you understand how potential buyers view the property. Selling these types of properties vacant and move-in ready may prove more profitable then selling them with a tenant in place. If you have a multi-family property or apartment complex, the rental rates and overall NOI will dictate what you can expect in terms of sale price.
  3. Connect with a investor focused Broker or Agent. They may have access to clients that would be willing to buy your portfolio which may help you save money. They also have current market data and the experience to show you what route will prove most profitable for you.