Here’s Why 2025 Might Be the Year to Let It Go and Level Up
If you’ve owned a rental property in the Poconos for years—maybe you inherited it, maybe you paid cash back in the day—you might think, “Why sell? It’s paid off and bringing in monthly rent.”
But what if I told you that holding on could actually be costing you money?
Let’s talk strategy—and why 2025 might be the perfect time to sell that old property and upgrade into something smarter.
The Truth About That Old Rental
First, let’s be real. That older rental has probably served you well. But ask yourself:
- Is it maximizing your cash flow?
- Are you still getting solid tax benefits from it?
- Is the maintenance starting to eat into your profits?
- Are you working harder than you should on an outdated property?
Here’s the thing: older homes often lack the tax efficiency and low-maintenance benefits that newer homes offer. And if you’re no longer depreciating the property—or only depreciating a small amount—you’re missing out on one of the biggest advantages of owning rental real estate.
Enter the 100% Bonus Depreciation Rule (Starting 2025)
A brand-new rule kicks in on January 19, 2025, and it could change the game.
What it says: If you acquire property after that date and place it in service before January 1, 2030, you may be eligible to deduct 100% of the cost of eligible improvements in year one.
That means:
- New appliances? Deduct them.
- HVAC system? Deduct it.
- Flooring, fencing, cabinetry? Deduct, deduct, deduct.
This could be a powerful reason to sell your older rental, roll your gains into a newer or better-located property, and take advantage of massive year-one tax savings.
Leverage Your Equity the Smart Way
If your current property is paid off or nearly paid off, that equity could be working a lot harder for you.
Imagine this:
- You sell your older home for $250K.
- You buy two newer single-family homes at $200K each using financing.
- You write off tens of thousands in eligible improvements thanks to the new tax rule.
- You generate more rental income, enjoy less maintenance stress, and unlock bigger tax advantages.
That’s how you build real wealth with real estate.
Worried About Capital Gains? Don’t Forget the 1031 Exchange
If you’re concerned about taxes from the sale, ask your CPA about a 1031 exchange. It allows you to defer capital gains taxes by rolling proceeds into new investment properties—while still benefiting from the 100% bonus depreciation on those new assets.
Talk about a win-win.
Final Thoughts
You may have held onto that rental property for years because it felt safe, sentimental, or simple. But markets change, tax laws shift, and opportunities like this don’t come around often.
If your goal is to create more cash flow, lower your taxes, and stop throwing money at old repairs, then now is the time to take a hard look at what your rental is really doing for you—and how it could be doing a lot more.
Want to Explore Your Options? Let’s Talk.
I specialize in helping rental property owners like you in the Pocono Mountains make smart, strategic moves. Whether it’s a valuation on your current home, guidance on a 1031 exchange, or finding the right rental property to roll into—I’m here to help.
📲 Call or text me: 570-730-1205
📧 Email: [email protected]
🌐 Learn more: Click Here
You’ve held on long enough—now let’s upgrade your portfolio.
