I have been working toward this for most of 2012. I hired a surveyor who laid out a three lot subdivision, a small lot north of the house where Grandma Evans had her garden, and a larger lot on the east side of the property. I worked with the real estate agent, Dallin Nelson, who helped Nathan and Gloria purchase their house, to plan the subdivision. I went through hearings with Spanish Fork city to get approvals and had lots of contacts with city officials to get the details right and meet city requirements. I got the electricity installed to the lots. I had dialog with several contractors who might potentially have installed lateral sewer, water, and pressurized irrigation lines to the two new lots.
Once the new subdivision was approved and recorded with Utah County, a few weeks ago, Dallin began to market the places for sale, and a builder, Icon homes, came along and wanted to buy the properties as a package, as is. So we sold it at a price that seemed fair to both of us. My efforts to create a subdivision gave us a fairly good gain over just selling the house alone, but still will leave Icon with the ability to profit from their construction. Selling it now means we won’t have to come up with money to finish installing the laterals (possible about $30,000) and I will never have to manage a rental property again in my lifetime. I had lots of discussion with my tax CPA about whether to invest in another property to avoid paying capital gains taxes on the sale, but decided, based on his input, that the potential amount of these taxes would not outweigh other risks or advantages of putting the money in another rental property.
When the money for the sale actually appeared yesterday in our bank account, I was surprised at the great feeling of relief that came over me.
1 comment:
Wow. Big News. Happy. Sad.
BTW, Dallin Nelson sold us our house in AF, too. He is the brother of the owners of that lovely place we lived in by the temple. He roams all through our family! :)
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