Single family investment property, buy and hold
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $638,000
Cash invested: $200,000
Sale price: $860,000
Single family bungalow on Queen Anne Hill. Bough, held, sold
What made you interested in investing in this type of deal?
We were living overseas, wanted a foothold in the rising market.
How did you find this deal and how did you negotiate it?
Worked with a residential agent, only looked on Queen Anne
How did you finance this deal?
With conventional financing
How did you add value to the deal?
Extremely selective site selection, neighborhood
What was the outcome?
Return was good, we rode out a rapid rise in the market which was the intent
Lessons learned? Challenges?
Huge learning, huge mistake. We were not informed of 'Like-Kind' exchanges, 1031 rules, and were ill informed. We were of the understanding that we could roll the profits from the sale into a permanent residence, which is not the case. We took a huge capital gains tax hit. Lesson learned....
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No, our agent did not inform us of the 1031 Exchange
