Selling my property

[Brian Hernandez]

I’m selling my NYC property and planning a 1031 exchange to defer capital gains taxes. Instead of reinvesting in one expensive property, I’m looking to buying properties out of state. I’m hoping to see if the brrr method seems more reasonable to do with what I’m going to have what’s left or just fixing & renting. The goal is to diversify & maximize cash flow & potentially own multiple properties all at once.

[Melissa Justice]

@Brian Hernandez,

That’s a smart move using a 1031 exchange to defer taxes! Given that you're selling in NYC and looking to diversify out of state, I’d consider this:

The BRRRR method can work but doing it remotely (especially across multiple properties) adds a lot of complexity-managing contractors, timelines, budget creep, and refinance variables. If you're not already plugged into a strong local team in your target markets, it can eat into both time and returns.

An alternative to consider, especially for diversification and immediate cash flow is to invest in multiple turnkey rental properties across landlord-friendly markets in the Midwest or Southeast. These can be a mix of new builds and fully rehabbed homes, already tenanted and managed, which helps you hit the ground running and spread risk.

This way, you still achieve:
-Diversification across multiple properties and markets
-Strong cash flow from day one
-Minimal management stress

Happy to share insights on markets where other investors are successfully using their 1031 exchange to pick up 2–4 cash-flowing rentals instead of just one expensive asset. Let me know!

Best of luck,

Melissa