Investing in Real Estate Series — Week 6

Have you been thinking about selling an investment property in the Southside Atlanta area? Whether you own a rental home in Newnan, a fix-and-flip project in Peachtree City, or even a vacation property south of Atlanta, knowing how to save money during the sale is essential.

This article will guide you through strategies to maximize profits and reduce taxes when selling an investment property. We’ll dive into capital gains tax, 1031 exchanges, and more—all tailored to the vibrant real estate market in Fayette and Coweta counties.

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Understand Capital Gains Tax

When you sell an investment property for a profit, you’re required to pay capital gains tax on the appreciation. Federal capital gains tax rates typically range from 15% to 20%, depending on your income, and Georgia adds an additional 5.75% state tax.

That’s why understanding your options to defer or minimize these taxes is critical. With the median home price in the Newnan area currently hovering around $400,000 and rising by nearly 4% year-over-year, selling strategically can make a big difference.

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Understand Your Goals Before Selling

Your approach to saving money on taxes will depend on your goals. Common scenarios include:

• Upgrading to a better-performing rental property in Newnan, Peachtree City, or surrounding areas.
• Cashing out and leaving real estate investment altogether.
• Flipping a property and reinvesting in your next project.

Defining your goals helps determine whether to pursue options like a 1031 Exchange or converting your rental to a primary residence.

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The Power of the 1031 Exchange

If you plan to reinvest your profits into another property, a 1031 Exchange can save you thousands.

What Is It?
A 1031 Exchange allows you to defer paying capital gains tax when you sell one investment property and purchase another “like-kind” property of equal or greater value.

Example for Local Investors:
Say you’re selling a single-family rental home in Peachtree City for $450,000. Instead of paying up to $90,000 in taxes, you reinvest that amount into a duplex in Newnan or a multi-family unit in Fayetteville.

Key Requirements:

• Identify your replacement property within 45 days of selling.
• Close on the new property within 180 days.

Whether you’re trading up for higher cash flow or looking for a new market opportunity, a 1031 Exchange helps you keep more money in your pocket.

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Convert Your Rental to a Primary Residence

If you’re ready to step away from being a landlord but want to minimize taxes, consider converting your rental property into your primary residence before selling.

How It Works:

• You must live in the property for at least 2 of the last 5 years to qualify for capital gains tax exclusions.
• If eligible, you can exclude up to $250,000 (single) or $500,000 (married) in gains when selling your home.

Pro Tip: This strategy works particularly well in neighborhoods with high appreciation, such as historic areas in Newnan or newer developments in Fayetteville.

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Work with Local Experts

Selling an investment property in Southside Atlanta requires the right strategy, timing, and professional team. Here’s how I can help:

1. Market Expertise
   I understand how the Peachtree City, Newnan, and Fayetteville markets perform. Whether it’s knowing the best time to sell or finding the right buyers, my local knowledge ensures maximum profit.
2. Pricing Strategy
   I’ll analyze local comps and position your property to attract competitive offers, ensuring you sell quickly and profitably.
3. Targeted Marketing
   With tailored marketing strategies, I can find the right buyer—whether it’s another landlord, a family looking to move in, or an investor seeking their next project.
4. Team Referrals
   I’ll connect you with trusted CPAs, attorneys, and financial advisors who specialize in real estate investments. They’ll help you navigate tax-saving opportunities and protect your profits.

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Real Estate Insights for the Southside Atlanta Market

The real estate market in the Southside Atlanta area remains strong, with continued demand for both rental properties and owner-occupied homes. Key statistics include:

• Newnan Median Home Price: $400,000, with a 4% annual growth rate.
• Peachtree City Average Rent: $2,300/month, making it an attractive market for landlords.
• Inventory Levels: Lower than average, meaning homes sell faster and often at or above asking price.

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Let’s Make Your Sale Profitable

Selling an investment property can be complex, but with the right plan, you can maximize profits and avoid unnecessary tax burdens. If you’re considering selling in Newnan, Peachtree City, or the surrounding area, let’s work together to make it a success.

📅 Schedule a consultation today to explore your options and create a custom strategy for your property.

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Keywords:

• Selling an investment property in Newnan
• Southside Atlanta real estate
• Peachtree City 1031 Exchange
• Avoiding capital gains tax in Georgia
• Real estate market trends Coweta County