How do I analyze 10 yr old SFR, to decide what to sell

Question

I have several SFR that I have owned for many years.  I might want to sell 1 or 2 or do a 1031 exchange but don't know how to analyze which ones are under performing.  I am confused about what I would use for sales price (then or now prices)  since I bought them years ago.

Robin Emery · Answer

Thankfully I am a Realtor so getting recent sales info is easy.  The rents can't go up any higher and they have actually gone down over the past 3 years, as have most of Las Vegas rents.  Once I get the net proceeds, net income and the amount of cash I have tied up where do I put those numbers?

Elizabeth Colegrove · Answer

We are actually going through this now. My mom is currently selling her townhouse and doing a 1031 exchange. I evaluated her situation by current value and rental value versus what we could buy/rent somewhere else.

Maryland

House Sold for 235,000

Rent 1490 a month after expenses $700

House was 35 years old and needed work

$135,000 to 1031

This bought 3 Houses in California with 20% down. Net profits $1500 with room to grow. 2 Houses are new construction, 1 House is 8 years old.

Wayne Brooks · Answer

You would want analyze what you can sell them for now, net proceeds from the sale verses net income. That would tell how you how much cash you have currently tied up on them, verses the return you're getting.

Vince M. · Answer

Assuming these are rental properties, check to see what similar SFRs are renting for locally. That should tell you if your rents are in line within the target area. You can then see about raising the rents or check with a Realtor to see what houses are selling for currently in the area and base you price to sell off of that.