You have a rental property for years, and never see the 'big pay-off.' Could it be time to cash-in on your own investment, since you've paid down the mortgage, and prices are up? Perhaps not. The Problem With Promoting Trying to sell means you'll have to pay a sizable capital gains tax. This is prevented if you reinvest by way of a 1031 exchange, but then the idea is that you want your hard earned money, right? Also, an excellent rental gets more income as rents rise. Do you want to lose this inflation-indexed retirement plan? What's the choice? Refinancing Rental Home Have you considered that if you refinance, you could get much of your gain from the property, without paying a dollar in taxes? Borrowing money isn't a taxable event. You may take it and invest it however you want, and still keep your rentals. Visiting we buy houses fast for cash reviews charlotte nc seemingly provides cautions you can tell your brother. Let's examine an example. Suppose you've held a little apartment building for a long time. You bought it for $240,000, with a downpayment of $40,000, and mortgage repayments of $1650 regular on the balance. Today it is worth $400,000, you simply owe $120,000, and your money flow is just about $800/month. How would you get at that money? A bank will likely loan you 700-watt of the price, or $280,000. After settling the first mortgage, you are left with $160,000. With todays lower interest rates, your payment to the new mortgage is going to be about the same. For the most part you could drop $50/month in cashflow. An even greater scenario: Use $40,000 for high-return upgrades to the property, including carports o-r laundry rooms, and then enhance the rents. You might have $120,000 left-over to pay any way you want, AND have higher cashflow. To research more, consider checking out: site link. Does that sound much better than selling your retirement plan? Do not sell. Refinance that rental property!.