How we 1031 exchanges a single family home into a 4 plex

[Randy Buff]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $550,000
Cash invested: $145,000
Sale price: $550,000

We 1031 exchanged a single family rental into a 4 plex with seller financing.

What made you interested in investing in this type of deal?

Increasing monthly Cashflow from a single family home (approximately $450 per month) to $2,100 per month after adjusting rent closer to market rent.

How did you find this deal and how did you negotiate it?

This was an off-market deal with one of our investors was looking to diversify their holdings and wanted to sell.

How did you finance this deal?

Seller financing

How did you add value to the deal?

Added a new roof and adjusted rents closer to market.

What was the outcome?

More cashflow from a great asset we want to hold long-term

Lessons learned? Challenges?

Handling repairs using 1031 exchange finds