The Hidden Benefits of a 1031 Exchange
The 1031 exchange is an extremely powerful tool in your tax arsenal, and I think it’s even a little more powerful than people realize
Up until this property I'd never owned a multifamily in the city of Charlotte, but by rolling my equity from one deal to the next (when I sold the Gastonia Fourplex and did a 1031 exchange) I increased my buying power significantly!
I used a bank statement loan to get non-QM financing on it (still 30-year fixed), and when the appraisal came back it was valued at $543,000! This gave me $84,000 in instant equity at closing.
The tenants lease ended in January and I got the renovation started, updating the entire thing and furnishing it to list as a short term rental! I write this about a month and a half into it being live on AirBNB and it has been a strong investment so far!
List Price: $459,000
Purchase Price: $459,000
Closing Date: November 2, 2021
Source of Deal: MLS
Funding Source: Bank statement loan
Size: 3,100 sqft
Sale Price: TBD!
Sale Date: TBD!
Estimated Profit: TBD!
Total Rehab/Furnishing: $53,000