[quote=exsdgal]Congratulations! What kind of property did you exchange from and to? Were both the properties in CA?
Thanks for the IPX introduction, going to tag this thread for future use. IIRC there were 2 sdr’s in this forum, whom should I contact. Looks like you are still actively involved in property acquisition. Were are you finding value?[/quote]
Both properties were in San Diego. PM if you want details…But in short, if it wasn’t for the property exchange, I wouldn’t have been buying a new property, because by itself, the acquired property wouldn’t have penciled out nicely. The buyer will owner occupy.
In my particular case, the property I sold was a short sales I bought a few years ago in a different part of town that dropped much steeper than average. The property I just bought was a property that dropped less than average. On the rebound, the property I sold rebounded much better %wise than the property I just bought. The property I sold almost covered the new property. The new property will have a much better tenant pool and command better rent. My cash flow improves even with the additional loan cost.
I think I got lucky. I didn’t like how my property was further away, and was concerned about the future tenant pool, even though it’s been always pretty cash flow positiv and my tenant was overall trouble free… I was willing to settle for an exchange that would have been a net zero financial benefit if it reduced the location P.I.T.A factor. I was even considering a DST exchange, but after doing some research, it appeared folks had mixed results.
The general inventory in the areas I am still looking is pretty much still crap. It’s still ridiculously expensive, and the best properties seem to still get snatched up quickly. At least where I am looking. This property turned up quickly in the right location, at the right price, with the right parameters, so we jumped on it in the middle of the night. I never stopped looking. Just figuring out how to move into better property that produces better income, or reduces my costs or PITA factor.
Hopefully, with Apple deciding to add 1000 more jobs in SD and Amazon expanding their footprint, we’ll continue to have strong healthy demand for housing from some of our young professionals
