Can someone give me an example of a 1031 success story

[John McKee]

Please do a deep dive on an example.  Why you did it?, What was the financial outcome of trading up your property.  Was the income less, more or the same.  What was your strategy?  If you are an intermediary please share an example of one of your clients. 

[Melissa Nash]

Yup! Use @Dave Foster

This is the story of how I turned a property worth $260,000 into $2.1 mil 

4 years ago I bought a condo in a ski resort town as and STR- the HOA got crazy and I wanted out even though it was cash flowing insane. I put the property up for sale on a Sunday night, and had 5 offers by Monday and we accepted the al cash offer. I called Dave and told him I needed his help asap. His team was extremely helpful making sure that I knew all the rules and timeframe. My profit margin was good and I didn't want to pay taxes on it. I wanted another STR...... I found one in another market, got outbid and continued to get outbid. I got creative (thats another long story) and finally got a property under contract. This property needed some work...... so I used the profits from property A, bought property B with the downpayment from profits of A. The new property was A LOT more expensive- but it covered ALL of the 20% down purchase price, the new property B needed work, and we got a great deal on it, so I pulled a BRRRR on it. We finished renovations in about 6 months, and I did a cash-out refi on it and purchased another STR (Property C). So, I got 2 properties out of selling 1 and both combined are valued much more and cashflow higher than just the A property; check out the numbers below.

The Deal

Property A profits: $180k (1031 exchange)

Property B purchase price :$700,000. (down payment from sale of property A)

Rehab property B

Refi property B at appraised value of $1.2 mil 

Purchased property C with downpayment from property B refi. 

Value of Property B & C = $2.1 mil +

Previous value of property A = $260k

Plus they are short term rentals and I make excellent cashflow. 

And it gets even better.........I did a cost segregation last year on Property B and got $330k TAX CREDIT..... that is the power of Real Estate my friends! Happy investing!