Client converts one investment property with $1000 in cash flow to one with $2000 in cash flow.
Mr. Investor bought a duplex 5 years ago for $280,000 and now it’s worth $550,000.
His rents are $2800 per month.
He was clearing $1000 per month, however his equity was so high that the rents did not justify hanging on to it.
I pointed out to him that if he took that $250,000 in equity, he could get 10% CCR (cash on cash return) and that would be $2083 at least.
He found a property that cash flows (after making minor repairs) $2500 per month. He is so happy he did!
And he didn’t have to pay taxes because he did all this through a 1031 exchange!
To learn more about the 1031 exchange presentation on June 16th go to www.AthenaPaquette.com/1031Exchange