Should i sell my rental property now or hold to manage depreciation recapture?

[GaryH]

I’m trying to figure out if I should sell my first rental property now or hold it longer. The market in my area feels high, but I’m worried about the tax hit from depreciation recapture eating up a big part of my gains if I sell.

[Jacob25]

Sold a rental last year when the market looked hot. Great timing on price, but the depreciation recapture bite hit harder than I expected and cut into my gains.

[Chloe88]

I keep staring at the cash flow numbers and the equity, and I keep wobbling between selling and just waiting it out as prices stay high.

[Anthony20]

We did a refi to pull some equity and bought a smaller duplex nearby. It kept the cash flow going, and we still have upside, even if taxes loom later.

[JustinVS]

Maybe the real issue isn't the taxes at all, but whether this property still fits your goals. Is the problem the tax hit, or your target return and risk tolerance?