Socal Multifamily Flip

[Mickey Petersen]

Investment Info:

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

Purchase price: $840,000
Cash invested: $75,000
Sale price: $1,200,000

Full renovation of all 4 units. All original tenants were long term low rent tenants. The first hurdle was convincing them to leave via cash for keys. It went pretty smoothly luckily. Each unit was Redone inside. Some more than others. two units had wood floors that we kept. But one unit was a full redo. Even new windows. We haven't decided if we want to keep this or sell it. It would be a good 1031 exchange since we forced a good amount of appreciation.

[Dave Foster]

@Mickey Petersen Like what @Alex Olson said, a 1031 exchange is a great way to diversify and further grow your RE portfolio. You can indefinitely defer the tax and use it to purchase nicer property/properties, as well as not have to recapture any depreciation.

I doubt if you'll have any issue with your hold period since it is all about your intent anyway. But make sure you make a file labeled "why I intended to hold this and what changed". Just in case.

Ultimately whatever correlates with your future plans but a solid way to build long term wealth.