Long Distance Duplex sold for a 1031 Exchange Opportunity

Long Distance Duplex sold for a 1031 Exchange Opportunity

Investor · Austin TX · Member since 2018 · 151 posts · 165 votes

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Cincinnati.

Purchase price: $65,000
Cash invested: $24,000
Sale price: $135,000

Purchased a duplex out in Cincinnati, one unit was occupied, the other needed a somewhat substantial rehab. It was great for me to learn how to manage a team from across the country, as well as learn more about the construction process in general.

Lessons learned? Challenges?

Just because a property cash flows on a spreadsheet does not mean it'll cash flow in real life! This was a great building to start out with but moving forward I'm going to be staying away from ridiculously inexpensive properties and focusing instead on great buildings in great markets!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Equity Advantage was the 1031 company - they were absolutely amazing. Kyle Friedman from Choice Lending is an absolute ROCKSTAR!

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Joshua JanusBusiness Member
Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
4y
65k for a duplex in Cincinnati? Holding that property for a long time will be a wild ride for sure I wish you luck. 
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  • Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
    4y

    @Jeffrey Albaum Congrats! It seems like you learned a great deal from this duplex, and leveraged that knowledge to wisely get out of the duplex and into something else that fits your long-term goals better!

    Have you identified your property/investment for the 1031 acquisition yet?

  • Investor · Austin TX · Member since 2018 · 151 posts · 165 votes
    4y
    Hi Doug, thanks so much! Was a great learning opportunity for sure! Yes - we actually recently closed on a new STR in the Smoky Mountains!
  • Rental Property Investor · Lebanon, OH · Member since 2016 · 220 posts · 228 votes
    4y

    Great work, @Jeffrey Albaum! You've done a great job of utilizing real estate to create wealth! The 1031 can be tricky, but it's an incredible wealth creator if you can use it correctly!

    I'd love to hear more about how you found a STR in the Smoky Mountains.

  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    4y
    65k for a duplex in Cincinnati? Holding that property for a long time will be a wild ride for sure I wish you luck. 
  • Investor · Austin TX · Member since 2018 · 151 posts · 165 votes
    4y

    Hi @Lee Yoder thank you so much! Greatly appreciate it! 

    Would love to connect to talk about the Smokies! 

  • Michael CravenPro Member
    Investor · Springfield, OH · Member since 2017 · 202 posts · 150 votes
    4y
    Quote from @Jeffrey Albaum:

    Investment Info:

    Small multi-family (2-4 units) buy & hold investment in Cincinnati.

    Purchase price: $65,000
    Cash invested: $24,000
    Sale price: $135,000

    Purchased a duplex out in Cincinnati, one unit was occupied, the other needed a somewhat substantial rehab. It was great for me to learn how to manage a team from across the country, as well as learn more about the construction process in general.

    Lessons learned? Challenges?

    Just because a property cash flows on a spreadsheet does not mean it'll cash flow in real life! This was a great building to start out with but moving forward I'm going to be staying away from ridiculously inexpensive properties and focusing instead on great buildings in great markets!

    Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

    Equity Advantage was the 1031 company - they were absolutely amazing. Kyle Friedman from Choice Lending is an absolute ROCKSTAR!


     Thanks for sharing your experience!

  • Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    4y

    Congratulations on doing an awesome job with your 1031 exchange. That's how you use it!

  • Rental Property Investor · Broken Arrow, OK · Member since 2019 · 42 posts · 8 votes
    4y

    Nicely done. I am originally from Cincinnati. Currently looking at quads back in the queen city. I have family in construction so it won't be as difficult managing a team from distance in that respect. Keep knocking them out of the park! 

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