If you own income property perhaps you have done a 1031 Exchange. I’m in the middle of one now and it is not without its angst due to all the pieces of the puzzle which must come together perfectly and the timing that you must adhere to in order to avoid paying a massive tax bill.
During the selling process, you must work with your tenants to get permission to access the inside of their homes for buyer viewings. Once the purchase has been accepted, the tenants will also have to allow access to their places for the buyer inspections (at the very least 1-3 times at a minimum). If the buyer walks away from the purchase, then there will be a repeat of the prior steps
All the proceeds from the sale must go directly to an exchange accommodated. The clocks starts ticking for your replacement property purchase as soon as you have closed on the original property. It will be helpful if you have been looking for a replacement property prior to marketing the first leg of the exchange. The strict identification timeline allows you a maximum of 45 days to have 3 properties to consider. The property that you ultimately choose must be closed within 180 days in order to avoid paying taxes on the prior sale.
Your new purchase will need to be at least the same price as the sale price of the original property and must have a loan of the same amount, or larger, as what was on the original property.
The stars must align correctly to have this happen easily, which may cause lots of worry if things do not go smoothly. Having a real estate professional represent you, particularly one who has gone through this process themselves, can be most helpful. However, the representative you choose will either put money in your pocket or take it out, so be sure to choose wisely.