Has anyone done a 1031 Exchange to a DST?

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Submitted by flu on November 14, 2018 - 11:56am

Curious if any of you done a 1031 exchange from a rental to a DST....If so, what kinda of DST was it?

Just brainstorming...

Submitted by FlyerInHi on November 14, 2018 - 2:22pm.

What is a DST?

Submitted by givdrvr on November 17, 2018 - 2:04pm.

Delaware Statutory Trust

Submitted by flu on November 25, 2018 - 3:51pm.

so I guess the answer is no.

Submitted by FlyerInHi on November 26, 2018 - 11:45am.

Could it be a deferred sale trust?

Submitted by flu on December 14, 2018 - 6:22pm.

Turns out I didn't need to exchange to DSTs.

I got lucky and we found a good replacement property shortly after entering escrow on the selling side, well before the 45 day window from closing. Transaction went surprisely very smooth.

If anyone plans on doing a 1031, I had a positive experience with the intermediary IPX1031... They arent the cheapest, but not the most expensive too. They were on top of everything, even through an accelerated closing I wanted to do.

Between the original buy and sell dates, gain on my property was about 120% after selling costs. The appreciation on the replacement property I bought during the same time period was about 48%. Also, during that period, it was a decent cash flow around 4% after a tiny loan.

Again, not my skill. Thank you sdr...Especially when I wanted to see the new place the wee late evening right when it went on the market.

Hopefully, this will increase my net monthly income by $300 and more importantly in a better area.

Submitted by exsdgal on December 17, 2018 - 1:21pm.

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?

Submitted by flu on December 17, 2018 - 9:20pm.

exsdgal wrote:
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?

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

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