Ross, CA2018-05-16T04:56:54+00:00

Project Description

1031 Exchange | Case Study | Ross, CA

Investor Profile: The Caregiver

The client is in his mid 70’s and owned a single-family home in Ross, CA. Over the past few years, he has developed Alzheimer’s and has been in an assisted living home for the past 2 years. His daughter contacted us to see if it made sense to sell her fathers home or continue to rent it out for $7,000 per month. The property was debt free and represented around 80% of her fathers net worth.

We reviewed 3 different markets. His daughter was comfortable reinvesting in Oregon where the returns were higher than the Bay Area, and there was a growing economy. We reinvested approximately 2.45 Million into a 10 unit building in an A+ area of Portland.

The Problem

The client’s daughter needed more income to cover her fathers assisted living cost each year. They were running a deficit of around 40,000 annually and needed to build up their savings in case of an emergency.

If they sold the rental home without reinvesting the proceeds, she would have a large tax bill of around $350,000 in capital gains. Selling outright would also mean losing the monthly income they needed.

The Solution

A 1031 Exchange is a great solution to this problem. It allowed our client to defer any capital gains taxes otherwise due on the sale while trading up to a better performing property that will help achieve their long-term goals.

Investors Goals

  • Increase Income

  • Lower Expenses

  • Diversify Portfolio

  • Build Wealth

  • Defer Taxes

Triggering Event

  • Investment Planning

  • Father Getting Older

  • Equity In-Balance

  • Property Underperforming

  • Cash Need

Transaction | Details

Property Sold | Exchanged

Ross, CA

This is the original family home.

  • Sales Price: $2,600,000
  • Number of Units: 1
  • Property Type: SFR
  • CAP Rate: N/A
  • Yearly Income: $84,000

Replacement Property 1

Portland, OR

Multifamily residential (also known as a multidwelling unit or MDU) is a classification of housing where multiple separate housing units for residential inhabitants are contained within one building or several buildings within one complex.

  • Purchase Price: $2,400,000
  • Number of Units: 10
  • Property Type: Multifamily
  • Yearly Income: $135,000
  • CAP Rate: N/A

1031 Exchange | Results

+ 1



Annual Income


Taxes Deferred

3 Years

Break Even Point

Complimentary Consultation: You Need It, We Gladly Provide It.

Our #1 priority is you, the client. We believe in our services and hold ourselves to the highest standards. We truly care about your Real Estate and Investments as much as you do, which is why we offer a complimentary consultation.

Get Started