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20201) find a fourplex that needs a little help listed for $35K2) offer $30K cash plus ask the seller to pay closing costs3) spend $20K to rehab the property & make it rentable - satisfying the standard 10% forced appreciation during the first year4) the property should now be worth ~$33K - giving you ~$3K in appreciation alone (not counting potential rental cash flow)20211) cut out as many expenses as you can on the fourplex & have the highest rents possible2) assuming 3% appreciation the property should now be worth ~$34K - giving you ~$4K in appreciation alone3) assuming all expenses are paid & $650/month individual unit rent, the total rental cash flow from all four units should be $1600/month - total annual profit: $4K (fourplex appreciation) + $19,200 (annual rent) = $23,20020221) buy fourplex II (using the profit from fourplex I) that needs a little help listed for $35K2) offer $30K cash plus ask the seller to pay closing costs3) spend $20K to rehab the property & make it rentable - satisfying the standard 10% forced appreciation during the first year4) the property should now be worth ~$33K - giving you ~$3K in appreciation alone (not counting potential rental cash flow)5) assuming 3% appreciation fourplex I should now be worth ~$35K - giving you ~$5K in appreciation alone6) assuming all expenses are paid & $650/month individual unit rent, the total rental cash flow from all four fourplex I units should be $1600/month - fourplex II is still being rehabbed - total annual profit: $5K (fourplex I appreciation) + $3K (fourplex II appreciation) + $19,200 (fourplex I annual rent) = $27,20020231) buy fourplex III (using the profits from fourplexes I & II) that needs a little help listed for $35K2) offer $30K cash plus ask the seller to pay closing costs3) spend $20K to rehab the property & make it rentable - satisfying the standard 10% forced appreciation during the first year4) the property should now be worth ~$33K - giving you ~$3K in appreciation alone (not counting potential rental cash flow)5) assuming 3% appreciation: - fourplex I should now be worth ~$36K - fourplex II should now be worth ~$35K - fourplex III should now be worth ~$33K - giving you ~$14K in appreciation on all three fourplexes6) assuming all expenses are paid & $700/month individual unit rent, the total rental cash flow from all eight fourplex units should be $3200/month - fourplex III is still being rehabbed - total annual profit: $6K (fourplex I appreciation) + $5K (fourplex II appreciation) + $3K (fourplex III appreciation) + $38,400 (fourplexes I & II annual rent) = $52,40020241) cut out as many expenses as you can on the fourplexes & have the highest rents possible2) assuming 3% appreciation: - fourplex I should now be worth ~$37K - fourplex II should now be worth ~$36K - fourplex III should now be worth ~$34K - giving you ~$17K in appreciation on all three fourplexes3) assuming all expenses are paid & $700/month individual unit rent, the total rental cash flow from all twelve fourplex units should be $4800/month - total equity: $37K (fourplex I price) + $36K (fourplex II price) + $34K (fourplex III price) = $107K - total annual profit: $7K (fourplex I appreciation) + $6K (fourplex II appreciation) + $4K (fourplex III appreciation) + $57,600 (annual rent) = $74,60020251) sell the fourplexes - use the 1031 tax exchange during the transaction to defer capital gains taxes to a later date (covered in SELLING section)2) buy twenty four unit apartment building w/ that $107K equity as a 20% down payment for a building priced at ~$535K (remaining loan amount is ~$428K) - after negotiating for lower price & seller pay closing costs of course!

20201) find a fourplex that needs a little help listed for $35K2) offer $30K cash plus ask the seller to pay closing costs3) spend $20K to rehab the property & make it rentable- satisfying the standard 10% forced appreciation during the first year4) the property should now be worth ~$33K- giving you ~$3K in appreciation alone (not counting potential rental cash flow)20211) cut out as many expenses as you can on the fourplex & have the highest rents possible2) assuming 3% appreciation the property should now be worth ~$34K- giving you ~$4K in appreciation alone3) assuming all expenses are paid & $650/month individual unit rent, the total rental cash flow from all four units should be $1600/month- total annual profit: $4K (fourplex appreciation) + $19,200 (annual rent) = $23,20020221) buy fourplex II (using the profit from fourplex I) that needs a little help listed for $35K2) offer $30K cash plus ask the seller to pay closing costs3) spend $20K to rehab the property & make it rentable- satisfying the standard 10% forced appreciation during the first year4) the property should now be worth ~$33K- giving you ~$3K in appreciation alone (not counting potential rental cash flow)5) assuming 3% appreciation fourplex I should now be worth ~$35K- giving you ~$5K in appreciation alone6) assuming all expenses are paid & $650/month individual unit rent, the total rental cash flow from all four fourplex I units should be $1600/month- fourplex II is still being rehabbed- total annual profit: $5K (fourplex I appreciation) + $3K (fourplex II appreciation) + $19,200 (fourplex I annual rent) = $27,20020231) buy fourplex III (using the profits from fourplexes I & II) that needs a little help listed for $35K2) offer $30K cash plus ask the seller to pay closing costs3) spend $20K to rehab the property & make it rentable- satisfying the standard 10% forced appreciation during the first year4) the property should now be worth ~$33K- giving you ~$3K in appreciation alone (not counting potential rental cash flow)5) assuming 3% appreciation:- fourplex I should now be worth ~$36K- fourplex II should now be worth ~$35K- fourplex III should now be worth ~$33K- giving you ~$14K in appreciation on all three fourplexes6) assuming all expenses are paid & $700/month individual unit rent, the total rental cash flow from all eight fourplex units should be $3200/month- fourplex III is still being rehabbed- total annual profit: $6K (fourplex I appreciation) + $5K (fourplex II appreciation) + $3K (fourplex III appreciation) + $38,400 (fourplexes I & II annual rent) = $52,40020241) cut out as many expenses as you can on the fourplexes & have the highest rents possible2) assuming 3% appreciation:- fourplex I should now be worth ~$37K- fourplex II should now be worth ~$36K- fourplex III should now be worth ~$34K- giving you ~$17K in appreciation on all three fourplexes3) assuming all expenses are paid & $700/month individual unit rent, the total rental cash flow from all twelve fourplex units should be $4800/month- total equity: $37K (fourplex I price) + $36K (fourplex II price) + $34K (fourplex III price) = $107K- total annual profit: $7K (fourplex I appreciation) + $6K (fourplex II appreciation) + $4K (fourplex III appreciation) + $57,600 (annual rent) = $74,60020251) sell the fourplexes- use the 1031 tax exchange during the transaction to defer capital gains taxes to a later date (covered in SELLING section)2) buy twenty four unit apartment building w/ that $107K equity as a 20% down payment for a building priced at ~$535K (remaining loan amount is ~$428K)- after negotiating for lower price & seller pay closing costs of course!

20201) find a fourplex that needs a little help listed for $35K2) offer $30K cash plus ask the seller to pay closing costs3) spend $20K to rehab the property & make it rentable- satisfying the standard 10% forced appreciation during the first year4) the property should now be worth ~$33K- giving you ~$3K in appreciation alone (not counting potential rental cash flow)20211) cut out as many expenses as you can on the fourplex & have the highest rents possible2) assuming 3% appreciation the property should now be worth ~$34K- giving you ~$4K in appreciation alone3) assuming all expenses are paid & $650/month individual unit rent, the total rental cash flow from all four units should be $1600/month- total annual profit: $4K (fourplex appreciation) + $19,200 (annual rent) = $23,20020221) buy fourplex II (using the profit from fourplex I) that needs a little help listed for $35K2) offer $30K cash plus ask the seller to pay closing costs3) spend $20K to rehab the property & make it rentable- satisfying the standard 10% forced appreciation during the first year4) the property should now be worth ~$33K- giving you ~$3K in appreciation alone (not counting potential rental cash flow)5) assuming 3% appreciation fourplex I should now be worth ~$35K- giving you ~$5K in appreciation alone6) assuming all expenses are paid & $650/month individual unit rent, the total rental cash flow from all four fourplex I units should be $1600/month- fourplex II is still being rehabbed- total annual profit: $5K (fourplex I appreciation) + $3K (fourplex II appreciation) + $19,200 (fourplex I annual rent) = $27,20020231) buy fourplex III (using the profits from fourplexes I & II) that needs a little help listed for $35K2) offer $30K cash plus ask the seller to pay closing costs3) spend $20K to rehab the property & make it rentable- satisfying the standard 10% forced appreciation during the first year4) the property should now be worth ~$33K- giving you ~$3K in appreciation alone (not counting potential rental cash flow)5) assuming 3% appreciation:- fourplex I should now be worth ~$36K- fourplex II should now be worth ~$35K- fourplex III should now be worth ~$33K- giving you ~$14K in appreciation on all three fourplexes6) assuming all expenses are paid & $700/month individual unit rent, the total rental cash flow from all eight fourplex units should be $3200/month- fourplex III is still being rehabbed- total annual profit: $6K (fourplex I appreciation) + $5K (fourplex II appreciation) + $3K (fourplex III appreciation) + $38,400 (fourplexes I & II annual rent) = $52,40020241) cut out as many expenses as you can on the fourplexes & have the highest rents possible2) assuming 3% appreciation:- fourplex I should now be worth ~$37K- fourplex II should now be worth ~$36K- fourplex III should now be worth ~$34K- giving you ~$17K in appreciation on all three fourplexes3) assuming all expenses are paid & $700/month individual unit rent, the total rental cash flow from all twelve fourplex units should be $4800/month- total equity: $37K (fourplex I price) + $36K (fourplex II price) + $34K (fourplex III price) = $107K- total annual profit: $7K (fourplex I appreciation) + $6K (fourplex II appreciation) + $4K (fourplex III appreciation) + $57,600 (annual rent) = $74,60020251) sell the fourplexes- use the 1031 tax exchange during the transaction to defer capital gains taxes to a later date (covered in SELLING section)2) buy twenty four unit apartment building w/ that $107K equity as a 20% down payment for a building priced at ~$535K (remaining loan amount is ~$428K)- after negotiating for lower price & seller pay closing costs of course!

Hello All,For my next deal, I'm looking into obtaining some hard cash from my colleagues in exchange for a percentage of equity or an interest only deal. 

I am considering doing a 1031 exchange.

My question is if I can do a 1031 exchange on a similar property under my own LLC versus in my name and get the tax benifets?

If the sale is to invest in another piece of property, the 1031 exchange saves us. 

Last week I closed on the sale of a rural 40 acre piece that I owned outright and have the money in a 1031 exchange. 

Seems like it was a situation where there was an unspoken agreement between the current owner and the tenants that he wouldn't fix anything...oh y'all, SO much deferred maintenance...in exchange for them getting crazy cheap rent and not asking for anything.