As 2025 Winds Down, It’s Time for Real Estate Investors to Think Ahead
With December officially here, forward-thinking real estate investors in Reno and across Northern Nevada are already laying the groundwork for 2026. On the latest episode of The Jon Sanchez Show (air date: December 2, 2025), Jon Sanchez, CEO of Sanchez Gaunt Capital Management, joined real estate expert Corey Edge of Edge Realty and mortgage specialist Dwight Millard of Highlands Mortgage to unpack key year-end strategies tailored specifically for property investors.
Here’s a recap of the most relevant takeaways from the episode—strategies designed to help investors refine their tax approach, evaluate cash flow, and explore timely opportunities in the real estate market before year-end.
- Accelerate Deductible Expenses Before December 31
One of the most consistent themes from the show was the importance of accelerating eligible deductions before the end of the calendar year. Some of the moves to consider include:
- Prepaying mortgage interest (if your lender allows it)
- Paying property taxes early if they’re not impounded
- Completing maintenance and repairs now rather than waiting until January
- Tracking operational expenses such as mileage related to property management
These actions can help maximize deductions for the 2025 tax year and improve visibility into your property’s profitability.
- Run a Profit and Loss Review for Each Property
As Corey Edge emphasized, many seasoned investors maintain a running ledger of income and expenses—but the end of the year is a critical time to reconcile those records.
Review your income and cost categories carefully, and work with a financial advisor or tax professional to:
- Evaluate operating expenses
- Confirm rent roll and vacancy rates
- Adjust any underutilized services
- Assess overall property performance
This step isn’t just about tax planning—it’s about knowing whether your investment is working for you.
- Leverage Depreciation and Cost Segregation Wisely
Depreciation is a core advantage of owning rental real estate. For those who own commercial or higher-value residential properties, a cost segregation study may unlock significant accelerated deductions.
While a cost segregation study may allow property owners to depreciate certain components—such as HVAC systems, appliances, or electrical wiring—over shorter timeframes than standard depreciation schedules, it’s important to consider the associated risks. These may include the upfront cost of the study, potential for increased IRS scrutiny, and the possibility of depreciation recapture taxes upon the sale of the property. Investors should consult with a qualified tax professional to evaluate whether this strategy aligns with their overall financial and tax planning goals.
- Consider a 1031 Exchange—But Act Quickly
If you’re planning to sell an investment property, a 1031 tax-deferred exchange may be an option to defer capital gains by reinvesting in like-kind property. However, timing is everything. If you're targeting a December transaction, it’s essential to:
- Coordinate with a qualified intermediary
- Identify potential replacement properties promptly
- Understand the specific IRS deadlines
There are also professionally managed structures, such as Delaware Statutory Trusts (DSTs), which may help investors complete 1031 exchanges within tight timelines. Contact your advisor to explore whether these are a suitable fit for your portfolio.
- Evaluate Refinancing Opportunities
While interest rates have fluctuated throughout 2025, some investors may benefit from refinancing their rental or primary property—especially if they’ve held older financing terms or their credit profile has improved.
Dwight Millard noted on the show that mortgage-backed securities saw some strength as the year wrapped up, which could signal favorable shifts. As always, reviewing refinance options should involve a holistic view of:
- Total loan costs
- Potential tax deductibility of fees
- Long-term cash flow impact
Work with your lender and tax advisor to determine if refinancing before year-end is strategically beneficial or better suited for early 2026.
Final Thoughts: Don’t Wait Until the Final Hour
Real estate transactions and tax strategies take time to implement properly. The earlier you start, the more flexibility you’ll have to adjust your portfolio and plan proactively.
At Sanchez Gaunt Capital Management, we believe in positioning our clients with the tools and insights they need to make informed financial decisions. If you own investment real estate in Reno or the surrounding Northern Nevada area, now is the time to start talking with your accountant, financial planner, and real estate team.
To catch the full episode of The Jon Sanchez Show from December 2, 2025, visit YouTube, Apple Podcasts, or Spotify.
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