This is where your qualified intermediary takes title to the new property and holds it until you are able to close on your old property.

At a 7% annual return, this could grow to $908K after 10 years, providing immediate liquidity and diversification.Alternatively, holding the property could yield $825K net equity after taxes in 10 years, assuming a $900K sale, with the potential to defer taxes via a 1031 exchange if reinvested into another property.

Investment Info:Large multi-family (5+ units) buy & hold investment.

Here are a few to watch out for:Property Condition: Most distressed properties need extensive repairs or renovations, which add to your initial investment.Competitive Market: With Phoenix's popularity among investors, competition for the best deals can be intense.Complex Deals: Foreclosures, auctions, or short sales are much more complicated compared to regular real estate transactions and usually require specialized knowledge.Tips to Successfully Navigate the MarketDo Your Research: Understand the local market conditions, including neighborhood trends, property values, and potential rental income.Build a Strong Network: Work with professionals who specialize in distressed properties-such as brokers, contractors, and legal experts-to make the best decisions.Assess Costs Carefully: Factor in the cost of repairs, holding costs, and any potential financing issues when evaluating a property’s profitability.Be Patient: Finding the right distressed property takes time.

Investment Info:Single-family residence buy & hold investment.

Investment Info:Single-family residence buy & hold investment.

Investment Info:Small multi-family (2-4 units) buy & hold investment in Fort Lauderdale.

Investment Info:Single-family residence buy & hold investment.

Investment Info:Single-family residence buy & hold investment.

If the market continues to appreciate, holding the property could yield more long-term equity gains.