After a few months of “almost” we formally sign contract In our apartment in Brooklyn, New York. we got our full Asking price within first two weeks of listing ($975,000), plus a sizeable down payment. (Thank you New York Real Estate!)
of course it no Until we get that fat check, but we’re excited to get to this point where, for the first time in months, the ball is in the buyer’s court to get appraised and financed – fingers crossed all of our systems are working well. (Yes, We know it could still go south at this point, but we are eternally optimistic! )
Of course, this is our first step towards a somewhat complicated Chapter 1031 Exchange-Where are we Selling our Brooklyn apartment we’ve owned for 20 yearsmake a very large profit (we bought it in 2004 for $375,000), and then roll the entire sale price into an investment property, which we hope will net us a big monthly check until the end of time .
With the first part of our exchange underway, we are now fairly free to focus entirely on the buyer. We’ve been very busy. You may remember that we took Quick travel to Dallas suburbs View (and ultimately deliver) big 13 apartment complex a ton Problems we decide we don’t want to deal with.
slightly affected with thiswe move to the other end of the resource-intensive domain and focus on let go neural network lease. here are some of The deals we reviewed over the past few weeks, how we analyzed them and why we ultimately passed (or didn’t?).
1. An auto repair company in Northeast China
- price: US$1.08 million
- Cap rate: 7.00%
- us: $75,600
- 10 Main lease term, rent increases by 5% per year 5 Year
- Four (five) year renewal options
- Corporate guarantee
- NN rental: Roof, Foundation and HVAC Landlord Responsibilities
go through: This is a Dual network lease (instead of Three networks), among which Too many large expenses will be our responsibility.
2. Popular chain restaurants in the Deep South
- price: $1.4 million
- Cap rate: 6.25%
- us: $89,154
- Construction in 2018
- 15 years absolute value neural network
- Annual rent increases by 1.5%
go through: too expensive. After deducting the loan, we only netted $3,400 per month.
3. Another popular restaurant chain in the Deep South with 8 years remaining on its lease
- price: $1.2 million
- Cap rate: 7.25%
- us: $90,000
- There are eight years left on the lease, with 10% increases every five years
- Absolutely NNN – the landlord has zero responsibility
- Popular restaurant chain
Undecided: The price is right, and the net income after debt service and interest is about $4,800, which is not bad. But we were nervous about having eight years left on the lease. Of course, when your NNN lease ends, rent starts to get very expensive because you may be vacant for a long time. Maybe that’s why cap rates are higher. We’ll have more conversations with our agents about this next week.
What do you think of the deals we reviewed this month? Did we make the right decision? What will you look for, and what will you run away from?
Our 1031 journey so far:
January: Selling our apartment, get started
February: Put the seller in a good position
March: It is 1031 exchange real worth?
April: Looking for the best deal in a haystack
possible: seller’s last ditch effort
June: Our apartment is on the market!
This 1031 Diary will become a monthly series in 2024, documenting our (hopefully) successful and profitable 1031 Exchange journey starting in May. We’ll share everything – all the data, analysis, good decisions, what we wish we’d done differently, the big mistakes (hopefully not a lot) and everything in between.
Have questions? Any suggestions? What do we lack? Share it in the comments below!
Notes on BiggerPockets: These are the opinions written by the author and do not necessarily represent the views of BiggerPockets.
