All Forum Posts by: Matt Mauriello
Matt Mauriello has started 1 posts and replied 2 times.
Post: When is the right time to 1031 exchange?
- Posts 2
- Votes 2
Quote from @Ricardo R.:
Hey Matt,
Nice first post — sounds like you’ve set yourself up with a solid single-family that’s already giving you positive cash flow and built equity. The big thing with a 1031 is you’re trading cash flow now for either more doors, more appreciation upside, or better long-term positioning.
A couple thoughts on your situation:
1. Cash flow vs. equity play.
Your SFH is throwing off +$600/month and is low-maintenance. That's a strong position. The duplex at current asking doesn't cash flow with 20% down, even though it has bigger rent roll. If you sell and 1031, you'd be "buying" into more doors, but possibly losing monthly cushion unless you get the price down or put in more equity.
2. When to 1031.
Most investors pull the trigger when:
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They want to scale doors (1 house → 2–4+ units).
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They’ve maxed out appreciation and don’t see much upside left.
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They want to consolidate into stronger locations (sounds like you’re thinking this way with the “type B” town).
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Or when a property starts to feel like “lazy equity” — lots of value tied up but not enough cash-on-cash return.
3. Don’t do it just to do it.
If the duplex doesn’t actually improve your cash flow, your risk-adjusted return, or your long-term strategy, then the 1031 isn’t worth it right now. Remember, once you sell, you can’t undo the exchange — you’ve got strict timelines and need to land a property that’s better for your portfolio.
4. Alternatives.
You could also consider pulling a cash-out refi or HELOC on the SFH. That way you keep the $600/mo cash flow and tap some equity to go after the duplex or another property without losing your current asset.
My Advice: A 1031 makes sense when the new property clearly moves the needle — better cash flow, better appreciation potential, or better portfolio fit. Right now, unless you negotiate that duplex price down or structure financing differently, you might just be swapping a strong SFH for a heavier lift with not much gain; I really hope this helps you Matt and rounds out your first post, I sent you a DM on BP and hope you can assist.
Hey Ricardo,
I really appreciate you taking the time to help me out especially in the detail you did. I agree with much of what you said, and you also gave me some new insight to think over. I’ll check out the DM now thanks again for the knowledgeable advice!
Post: When is the right time to 1031 exchange?
- Posts 2
- Votes 2
Hello BP comminuty, first post here bear with me . I'm a Hudson Valley based investor looking for advice/ insight in the area of 1031 exhanges and when to use them. I have a small portfolio that includes a small SFH that currently rents for +$600 cashflow. I've owned it for about 5 years and am happy with its current cashflow that being said its built up quite a bit of equity ($200k+ roughly) and now a duplex has come up in the next town over (higher end town) Id classify it as a type B. The pricetag on it is 689K been on market for a little over a month currently rents for $2500/m each side for $5k total (no cashflow @ asking w/ 20% down). I was considering given the geography and it being a duplex and the potiential long term equity grab doing a 1031 exchanging into the duplex. My question is at what point does this become a worthwile investment strategy? If I 1031 to knock the mortgage payment down to a point of positive cashflow would that be the only criteria? I would assume it would appreciate just as well if not better than the SFH. The overall goal would be to expand/ improve my portfolio obvioulsy. Any insight/ advice would be greatly apprecited. Thank you!!