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Updated over 4 years ago, 09/28/2020
Projected 1031 DST Cash Flows
New guy here; nice to meet everyone.
I've owned a six-plex in California for 30 years; no shelter left; almost no debt. Income vs equity is unattractive. I'm close to retirement. I want get rid of the property and get uninvolved; maybe move away. Cap gains are brutal and a normal 1031 won't meet my needs. DSTs seem attractive. I've looked at several offering packages; but I cannot figure expected cash flows. Maybe somebody could illustrate.
Here's a theoretical (non-personal) examplel: $250,000 buys a 1% share in the offering (say, a seasoned, Texas residential apartment building). Leverage is 50%. Setup load is, say, 12%. DST term is projected as five years; inflation is expected to be 2%/year. Projected yield is 6%. The first step is easy: I put up a quarter million bucks.
Assuming that everything goes as planned, What would the purchase price of the property be? What would my cash flows be? (say annual disbursements)?
Thanks