All Forum Posts by: Brian Isleib

Thanks for all your responses and advice. To your point, let me provide some specifics: 

*Listed condo at $1.35mm and we expect it to sell at this list price or higher. We owe $459k in principal on the property and expect to pay 5% in real estate agent costs to close. We have owned the property since 2008 and will get hit with some depreciation recapture but specific still TBD. Our cap rate on this property at today's market valuation is as one would imagine shockingly low and insufficient to meaningful change our lifestyle. The purpose is to find something that actually can generate meaningful cash flow as a hedge against any future changes in our W-2 income.

*We are interested in $1.2mm up to $1.6mm range ideally. While we realize 1031 exchange requires the property to be of greater value (selling price + $1) we don't mind paying a small amount of tax on any "boot" representing the delta between a hypothetical $1.2mm deal and the selling price to avoid overextending our debt position heading into a potential downcycle. We are open to any multi family property or set of properties that generates gross cap rates at a minimum of 6% and would prefer newer construction (and hence fewer immediate maintenance needs) and solid tenant quality (i.e. neither luxury rentals nor Section 8 folks but rather solid folks who have jobs) in exchange for a lower immediate cap rate. 

Thanks again to you all!

Hi, my wife and I have listed and are in the process of selling our 2 Bed / 2.5 BA condo in San Francisco's SOMA / South Beach / Mission Bay area. We are interested in executing a 1031 exchange into a higher cash on cash return profile multi family property to diversify our geographical exposure and income streams beyond our W-2s. We are interested in out of state properties as well as CA (although my sense is CA cap rates are relatively unattractive and we would prefer to shift away from appreciation as share of total yield). If anyone has any local advice on finding such deals in Utah, Indiana, Nevada, Washington, Idaho, Wisconsin, Florida, Arizona, Texas other than searching Loopnet I would be very interested in your feedback. Thank you kindly for your time and consideration.