Investment + 1031 Exchange
Selling investment property strategically, not emotionally
A primary residence is a home. An investment property is a math problem. The question is never just 'what will it sell for' but 'what nets the most after taxes, what fits the portfolio, and what does the next chapter look like'. I work with landlords, flippers, and small-portfolio investors across Denver and Boulder metro.
- 45 days
- To identify replacement (1031)
- 180 days
- To close replacement (1031)
- 25%
- Depreciation recapture rate
- $0
- Tax I'll personally calculate (call your CPA)
Exit paths
Six ways my investor clients actually exit
The right path depends on your basis, your goals, your appetite for being a landlord, and your tax situation. We pick the one that nets the most after everything.
Cash out, fully exit
You're done being a landlord. We sell, you take the cash, you pay capital gains. Cleanest exit. We focus on top-of-market price and a smooth tenant handoff.
1031 into more units
Sell the duplex, roll into a fourplex. Defer all gains. Scale up. I coordinate with a qualified intermediary and structure the timeline around the 45/180-day IRS deadlines.
1031 into a different market
Sell the Denver rental, roll into a Florida or Texas property. I coordinate with out-of-state agents and the QI to make the exchange work across state lines.
1031 into passive income
Tired of toilets and tenants. Roll into a DST (Delaware Statutory Trust) or similar passive vehicle. Defer gains, no more property management. I'll connect you with DST sponsors I trust.
Sell vacant for top dollar
Wait for the lease to end, light renovation, list to owner-occupants. Almost always nets more than tenant-occupied if you can carry the holding cost for 60 to 90 days.
Sell tenant-occupied to investor
Faster close, no renovation, no vacancy. Slightly lower price but lower friction. Right move when you need to move fast or the tenant is excellent.
The 1031 reality
Most landlords leave money on the table by not exchanging
A typical Denver-metro rental held for 8 to 12 years has $150K to $400K in unrealized gains plus depreciation recapture. A straight sale exposes all of that to tax in a single year. A 1031 exchange defers it indefinitely.
The deadlines are unforgiving (45 days to identify, 180 to close) but they are workable with the right team. I have closed exchanges where we identified the replacement on day 44. The setup is what matters: engage the qualified intermediary before the sale closes, not after, or the exchange dies on day one.
The investor workflow
Six steps from current rental to next chapter
- 01
Investor strategy call
We talk through your goals: cash out, scale up, diversify, or shift to passive. We look at your basis, depreciation recapture, and likely tax exposure. I am not a CPA but I know enough to make sure we are asking your CPA the right questions.
- 02
Tenant + property assessment
Walk the property. Review the lease. Assess condition, deferred maintenance, and what owner-occupant comps look like vs. investor comps. We pick the exit path that nets the most after costs.
- 03
Pre-list prep (if applicable)
If we are selling vacant for top dollar, we coordinate the tenant move-out, light renovation, and staging. If selling occupied, we work around the tenant respectfully.
- 04
QI engagement (if 1031)
I introduce you to a qualified intermediary. You sign before we list. The QI holds the funds at closing so the exchange qualifies. Without a QI, no exchange.
- 05
List, market, negotiate
Same six-pillar marketing plan as my owner-occupied listings, with extra weight on investor channels (BiggerPockets network, off-market investor lists) when selling occupied.
- 06
Identify + close replacement (1031)
Within 45 days of closing the sale, we identify up to three replacement properties. Within 180 days, we close on one. I coordinate every deadline so we never lose the exchange.
Common investor questions
Selling a single rental and not sure if you need the full investor workflow? See the simpler Sell Your Rental overview →
Ready to map your exit?
A 30-minute investor consult. We map your goals, your tax exposure, and which exit path actually fits. Bring your CPA's contact info and we will loop them in if needed.