FAQ: How to Model the Sale of a Rental Property?

To model the rental property sale your best option is to go into Profile and click “Selling a Home”. This will turn on a Foundation section where you can enter the sale date for the rental property and the cost of sale (which will be deducted against any capital gain).

If there is a mortgage remaining you’ll need to manually repay the outstanding loan, this can be done in Debt Payoff Plan. Add a lump sum amount greater than the outstanding balance in the month of sale. This can be done in the Foundation > Debt Payoff Plan > Table.

Finally, you’ll need to make sure the rental income and rental expenses end in the right year. Make an override that reduces these to $0 in Planning > Projections > Table.