$55K in 1031 - DST vs. Turnkey | Analysis & Discussion

[Andrey Y.]

Lets start with a backstory.

Around early 2014, I purchased my first property immediately intended for an investment in Oahu, Hawaii. I put down $50K and got a 0% loan from a family member for $100K (paid around $150K cash).

I immediately did my first cash out refi at an appraised value around $185K. This gave me around $135K cash out which enabled me to re-coup most of my DP and loan amount. This property always cash flowed at >$500 per month after PITI, and condo fees around $400. Additional maintenance was minimal at 2-3% of gross rents.

I did my 2nd cash out refi around early 2019 at an appraised value of of ~$290K. Mortgage balance at this point was around $113K, which gave about $80K in tax free cash out. Property still "cash flowed" and life was good.