1031x deal analysis

[Daria B.]

Hi

Doing my first 1031x. Single family residential to same.

How do i analyze a replacement property for an exchange?

The only cash out my pocket will be the cash I use if I am unable to find a replacement property at the net sales of the relinquished property. And I doubt no one who does an exchange hits the exact amount. I expect to add to the cost of the replacement property. If my net sale is $300k I would likely use cash out of pocket given the range of local sales in my area and need up to $50k to add to my $300k exchange amount. I’ve found a range of properties at $300k and above.

With that said, the metric formulas that use the purchase price, would this be $50k or $350k considering out of pocket was $50k?

Is “purchase price” $350k or $50k when calculating for some of these analysis metrics?

Do I do the same regarding the same metrics such as cash flow, GRM, COC, etc?

COC uses "total invested cash" so is that just my $50k or the $300k + $50k?

And then there is rent to value that also uses “purchase price”.

Cheers.