I need to spend $1 million

Short-Term & Vacation Rental Discussions
7moFollow

I need to spend $1 million

Steven Escobedo
Lake Forest, CA · Member since 2017 · 29 posts · 11 votes

I just sold the property in California and I need to do a 1031. I have experience with short-term rentals, but I need to get out of California. Where can I find a property worth 1 million bucks that gives 15% cash on cash? Or should I buy two at 500? Or heck should I buy one of at 500 and buy a duplex triplex somewhere in the Midwest as well?

8Reply
852 views

Most Popular Reply

Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
7mo

You are doing a 1031 and you didn't identify a property in advance?

6Reply
See this reply in the discussion

48 Replies

Jump to latestLatest
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    7mo

    I've got one I'll sell you for a million!  

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    3Reply
  • Pierre Guirguis
    Lender · Marlboro, NJ · Member since 2025 · 243 posts · 150 votes
    7mo

    Interesting timing. I’m working with someone in a very similar position right now, although they’re specifically targeting Pennsylvania.

    From a cash flow standpoint, PA can make a lot more sense than high-cost states. In the right submarkets, multifamily still supports positive leverage and solid returns if the deal is bought correctly.

    That said, whenever you’re investing out of state, I always tell people to first look where they already have strong contacts. Having reliable boots on the ground, property management relationships, or trusted brokers in a market matters more than chasing an extra percentage point of return. Execution risk is real, especially in a 1031 situation.

    As for one $1M asset versus two $500K deals, that comes down to complexity and oversight. One is simpler to manage. Two can spread risk, but they also require more coordination.

    The biggest driver here is your timeline. Are you already in your 45-day identification window?

    1Reply
  • Josh Ball
    Real Estate Agent · Louisiana · Member since 2017 · 215 posts · 149 votes
    7mo

    Florida

    1Reply
  • James Carlson
    Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    7mo

    Cue the real estate agents advocating for their markets! Speaking of that .... 

    Who doesn't want a short-term rental in the beautiful Colorado mountains? ;) 

    5Reply
  • Steven Escobedo
    OP
    Lake Forest, CA · Member since 2017 · 29 posts · 11 votes
    7mo

    @Pierre Guirguis still have about 10 days before the 45

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    7mo

    Checkout renttoretirememt.com

    They have properties all over that meet that requirement. Might have to buy 2 or 3 properties.

    0Reply
  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    7mo

    Florida...other than Miami where the prices - that were already high - are skyrocketing.

    0Reply
  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    7mo

    I'd recommend not chasing a "perfect" $1M deal for 15% cash-on-cash because that return usually only shows up with value-add or a serious STR advantage. I'd go one $500k plus a duplex/triplex in solid cash-flow cities like Columbus, Cleveland, so you diversify vacancies and can force appreciation with rehab and rent bumps.

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate540 Reviews
    WebsiteView Page
    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    7mo
    Quote from @Steven Escobedo:

    I just sold the property in California and I need to do a 1031. I have experience with short-term rentals, but I need to get out of California. Where can I find a property worth 1 million bucks that gives 15% cash on cash? Or should I buy two at 500? Or heck should I buy one of at 500 and buy a duplex triplex somewhere in the Midwest as well?

     You would need to look into the midwest @Steven Escobedo. That is where you are going to get the best return for you money. Choose a good cash flowing market in the midwest where you can put down 15% down and buy a cash flowing property.

    Tons of tech companies are investing in the midwest like intel, google, amazon. Good market for cashflow and strong appreciation.

    I've got 28 units here in market and sold over 120 properties this past year.

    [email protected]614-802-5698
    ReafCo | Ahmed Group 536 Reviews
    WebsiteView Page
    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    7mo

    15% cash on cash. Find one that will on paper provide that but will end up cash negative. You are class D or F housing for that type of "return" 

    7e investments53 Reviews
    WebsiteView Page
    2Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    7mo

    You are doing a 1031 and you didn't identify a property in advance?

    6Reply
  • Ed O.
    Investor · Statewide, MO · Member since 2011 · 815 posts · 425 votes
    7mo

    Beware is all I can say. Many stories about people that purchased from turn key people and got torched! Even one that is a big advertiser on this site. Trust no one bringing you deals . Pay a nuetral 3rd party to vet anything you consider.

    3Reply
  • Ethan HaiglerBusiness Member
    Real Estate Agent · Charlotte, NC · Member since 2019 · 111 posts · 58 votes
    7mo

    @Steven Escobedo if you decide the Midwest, I can help. I’m working with a 1031 client from CA right now who is shifting about $500k into several income producing properties in Cleveland

    [email protected]704-607-2078
    3 Little Pigs Rental Management
    WebsiteView Page
    Ethan Haigler Realty
    WebsiteView Page
    0Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    7mo

    You're wanting to buy $1M with cash that does 15% CoC or with a mortgage?

    Cosmic Vacations4.9172 Reviews
    WebsiteView Page
    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    7mo

    You can get over 20% at that price point in Tampa area :)

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    7mo

    Yeap come on and 1031 that into good ol Central IN. 

    0Reply
  • Lilianna Davitt
    Real Estate Agent · Greater Tampa Bay Area · Member since 2026 · 16 posts · 3 votes
    7mo

    I am here to help in Tampa and St Pete!

    0Reply
  • Joe Watson
    Property Manager · Tucson, AZ · Member since 2019 · 27 posts · 14 votes
    7mo

    There is no beach front in yuma so be careful, 

    Where do you visit most often outside of California?

    Orange county is definitely an equity market, I would look to build. Obviously that would require a team, what is your normal process for choosing an investment?

    Hope you find a suitable property, if you are interested in Tucson market, I have several available we can talk about.

    1Reply
  • Nick Velez
    Lender · Member since 2019 · 250 posts · 219 votes
    7mo

    @Steven Escobedo

    Pinellas county in Florida is likely a great option for you, I have clients doing insane numbers on 800-975k STR's and you get the benefits on of a STR friendly state :)

    @Josh Green is a local investor and realtor with over 20 high caliber STR's under his management, I highly suggest connecting with him to see if it would be a good fit.

    0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    7mo
    Quote from @Steven Escobedo:

    I just sold the property in California and I need to do a 1031. I have experience with short-term rentals, but I need to get out of California. Where can I find a property worth 1 million bucks that gives 15% cash on cash? Or should I buy two at 500? Or heck should I buy one of at 500 and buy a duplex triplex somewhere in the Midwest as well?

    As they say on TV "are you surrrrre". is this for real?
    0Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 939 votes
    7mo
    Quote from @Steven Escobedo:

    I just sold the property in California and I need to do a 1031. I have experience with short-term rentals, but I need to get out of California. Where can I find a property worth 1 million bucks that gives 15% cash on cash? Or should I buy two at 500? Or heck should I buy one of at 500 and buy a duplex triplex somewhere in the Midwest as well?

    @Steven Escobedo

    Congrats on the sale! If your goal is strong cash-on-cash, splitting your capital can be smart. One property in a high-demand market plus a couple of smaller Midwest deals can diversify risk and boost cash flow. Ohio and other Midwest cities have undervalued duplexes and triplexes where 10–15% cash-on-cash is realistic, and you can often recycle capital faster with BRRRR-style plays. It's all about balancing appreciation potential with immediate cash flow, and buying out of state can really stretch your dollar.

    [email protected]614-418-6081
    0Reply
  • Mayo GilfurtPro Member
    Real Estate Consultant · Connecticut Ct · Member since 2026 · 130 posts · 30 votes
    7mo

    With a 1031 clock running, the bigger question is less about geography and more about whether you want operational intensity (STRs) or durability and financeability. Are you prioritizing lender-friendly assets or yield optimization?

    0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    7mo
    Quote from @Steven Escobedo:

    I just sold the property in California and I need to do a 1031. I have experience with short-term rentals, but I need to get out of California. Where can I find a property worth 1 million bucks that gives 15% cash on cash? Or should I buy two at 500? Or heck should I buy one of at 500 and buy a duplex triplex somewhere in the Midwest as well?

    Midwest is a great place to invest currently with one of the highest COC returns. Happy to help!

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    0Reply
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    7mo

    @Steven Escobedo, It's pretty late in the day to have to be looking at many geographic and type alternatives. Depending on your tax situation (although I see you're in CA, so it's likely dire), you don't want to rule out just letting your 1031 die. You'll pay the same tax you would have at the same time. But you won't buy the property you wish you didn't. No one ever went broke paying tax on profit. It just feels like it.

    If you don't want to put all your eggs in one basket, you could either do a partial exchange (pay tax on part of the profit but shelter some profit as well). Or do what you're contemplating, and what we call a diversification exchange. A diversification exchange allows you to hedge risk by purchasing multiple properties. Investors will sometimes pay cash for the first property and finance the second one in exchange to mitigate risk further. And they can utilize their equity if they want to refinance after the exchange to access some cash for a down payment on another property or something else.

    The 1031 Investor5137 Reviews
    WebsiteView Page
    0Reply
  • Tyler Divin
    Property Manager · Chattanooga, TN · Member since 2018 · 178 posts · 134 votes
    7mo

    Do you plan to self-manage or hire a manager?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free