I get asked often about the difference between DSTs and 1031s, so I wrote up this quick comparison.

@Kyle Pierrehumbert in addition to checking out the Zillow suggested rent, what comparison did you do between your property and nearby competition?

I'm looking at flood zones, population growth/decline, crime rate, the economic trends and future or current incentives for development in the area, what the biggest employers are, Zillow for rental comparisons, and property pricing.

For comparison, a DSCR loan with 25% down, 3-year prepayment penalty and a 0.25% credit also prices out in the mid 7s (but requires a much larger down payment compared to owner-occupied).

For comparison, homes in 95691 appreciated in median list price from end of September of 2023 to now with a $636,112 90 day average to $649.037 90 day average at the end of March 2024.3.

It exposes you to a lot of liability  It is my understanding from reading and researching that it is very difficult to get a cashout refi approved for the same amount (or even just to get approved in general) when in an LLC, in comparison to when the property is held in the individuals name.

I'm eager to tap into your collective wisdom: What tools and strategies are you using to navigate the market and make those savvy comparisons?

There is good demand, but you have to price it right in comparison with the active properties around.

It depends on how long you plan on keeping the property, what your average utilities costs are in comparison to rent, etc. 

NOI is what it is, and is property-based for easy comparison.