Exchange & Elevate

A seasoned investor with two single-family rentals in a college town sought higher returns and a diversified portfolio. While the properties were stable, their 2% cash return on net equity wasn't optimal. Recurring maintenance needs further eroded their income.

We analyzed the situation and saw an opportunity to significantly improve their return while offering tax deferment through a 1031 exchange. Our strategy revolved around finding a new asset with less capital needs and higher growth potential.

Using a targeted approach, we sold both properties quickly and above asking price, receiving multiple offers. This provided our client with the capital for their next move.

While marketing the rentals, we proactively searched for off-market acquisition opportunities that aligned with their goals. We identified a meticulously renovated 7-unit apartment building in Paso Robles, CA, boasting a prime location, strong demographics, and virtually no deferred maintenance. 

To minimize upfront costs and maintain their desired risk profile, we secured seller financing with a 5.5% interest-only loan for 5 years. This deal tripled their gross rental income and more than doubled their cash flow compared to their previous properties.

• 2X Increase in Cash Flow: Our client now enjoys significantly higher cash flow from their investment.
• Tax Deferment Achieved: Through a successful 1031 exchange, they avoided capital gains taxes.
• Reduced Management Burden: The multifamily building requires less maintenance, freeing up their time.
• Diversified Portfolio: Their portfolio now includes a different asset class with strong growth potential.

We believe in being true partners, going above and beyond to help clients achieve their long-term goals. This case study exemplifies our commitment to creating lasting relationships built on trust and exceptional results.

• Partnering with a trusted advisor can unlock opportunities beyond the typical transaction.
• Strategic selling and proactive acquisition strategies can maximize your investment potential.
• The right financing can enhance your returns while aligning with your risk tolerance.
• A diversified portfolio with the right assets can set you up for long-term financial success.