Can someone give me an example of a 1031 success story

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How I turned $21,000 into $500,000 in equity and control of a $1 million asset using 1031 exchanges.Purchased condo in 2010ish in Frederick MD for $105k.Sold in 2015 for for $180k and 1031ed into a $400k single family home in Silver Spring MD.Sold that SFH in 2020 for $550k and 1031ed that into an $800k rowhouse in Washington, DC.Property currently valued at roughly $1 million with close to 50% equity in it.

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Yup! Use @Dave FosterThis 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 DealProperty A profits: $180k (1031 exchange)Property B purchase price :$700,000. (down payment from sale of property A)Rehab property BRefi 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 = $260kPlus 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!

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@John McKee, There's a few folks you can reach out to by going to my profile and scrolling down to references. They can tell you the why what and and how of what they did. I've helped folks go from few to many and many to fewer but larger. from low cash flow to better cash flow. from one type to another. back and forth from primary to investment getting tax free cash out and actually retiring and dying (not the best option but certainly an inevitable one) and leaving the property to their heirs tax free.I think you'll find that there are so many opportunities to shape your REI career. And 1031 is a great tool to use. Definitely not an always tool. But also definitely not a "never" tool.

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This is a fun one...I purchased a property in North Georgia for 165k, fixed up and sold for 399k the same year. Then I had a lease Option purchasing some STR cabins up here and I exercised my option to purchase and used the 1031 money plus cash to purchase with cash.

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Our partner on our biggest deal (technically a TIC; tenants in common) did a 1031 exchange to get into it. They ended up making over a million dollars when we bought them out five years later. I discuss the details in this article: https://www.biggerpockets.com/...I've heard of lots of people doing well with a 1031 exchange.

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@John McKee We have done three 1031 exchanges so far. Our most recent 1031 exchange was done last year in April. We sold a 2 bdrm, 1 bath per side duplex and purchased a 3 bdrm, 1.5 bath per side duplex with garages. The duplex we traded into is only 15 minutes from our house, 30 years newer and much easier to manage. The specific details of our transaction are as follows: sold original duplex for $535K (rolled over equity of $145K) and purchased new duplex for $550K. We renovated the new duplex and now have it rented out. Total rents for the new duplex are ~$1,500 more per month, got a lower interest rate on our new loan, cash flow from the property is roughly double and were able to significantly improve our equity via forced appreciation.Hopefully this helps answer some of your questions.John

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Increased cashflow 3X- keep in mind these are STR's with high and low seasons. Previous cashflow 1 property ($2k mo NET w/leverage) After exchange- 2 properties ($5-8k/mo Average NET w/leverage)add in the tax benefits.......that's cash back in my pocket and not uncle Sam's.

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I used to own a residential property back in the day and realized my return on equity was about 2%. This was during the real estate boom of 2002-2007. I moved that equity into a ground lease with a partner, and at the time it was paying 6%. So I tripled my return, traded up in value, avoiding capital gains, and created passive income.Now is a great time to look at your equity since a lot of us have had a pandemic increase in value. Once you do the math your emotion to that property might just start to waiver. Even if you don't consider a 1031 you should at least get that HELOC on your residential before the value drops over the next few months.Moral of the story is to keep an eye on your equity and put it to work.

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@John McKee, Hi John, I have a lot of great examples done over the last few years:Story #1: My own: I sold a 4 flat in the Suburbs that I had for over 7 years and it had enough equity to buy 3 - 4 flats in a different area of the City of Chicago, going from having the tenants paying off 300K to a new total mortgage of over $1,000,000, and cash flow more than doubled. Interestingly enough, I am already ready to leverage the three new building in spring on an even larger property and do another 1031 Exchange.Story no 2: I have a client in Chicago that had a very low return on investment on his places, was self-managing them and had a change in lifestyle, wanting to start freeing his time to build a new business. So after a strategy talk, I sold his 7 unit & 4 unit and found him off market two large commercial properties with triple Net leases in place so he can stop managing rental units and just collect money while his loans went from about 1 million to over 2 million, building wealth really fast.If you wonder why I am mentioning the mortgage amounts, is because with the inflation and tenants payed equity, the more you own and the large mortgage amounts, the more you depreciate for tax brakes, the more you get to appreciate and the more tenants pay off, growing your equity very, very fast.Story no 3. I have a friend that I met at a Tony Robbins event who shared how much equity she had in a property and how much cash flow she had. When we did the math, she was getting 1% cap rate. After that realization, she made a swift decision: she sold her property with lots of equity in California and used the money to buy 5 properties here in Chicago, with a total of over 2.5 million in loans, lots of cash flow & property management in place.Story no 4. I received a referral this year for a couple that sold a condo in the Suburbs and after sitting down with them and learning about their issues and what they are looking for, I found them a commercial condo with a triple net lease in place that has three times the value of what they sold and has in place a long, 10 year lease with couple 5-year options in place.I can give you a lot more examples. The question is: "What is your goal"? Are you looking to increase your equity, your cash flow, your depreciation or are you looking to stop doing self-management? Or is it that your rate of return is very low? When I sit down with people wondering if they should do a 1031 Exchange, we analyze the return on capital, what the owners are happy with and what their goals are for the future real estate wise and that's how we determine if they should sell their existing properties and do a 1031 Exchange or not.

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AlexGive us an example of a deep dive of your clients 1031 into a DST. amount, type of DST, cap rate of DST, why they did a 1031 etc. Why did they choose this particular DST?