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What is IRS 1031 Exchange? - Increase the size and power of your portfolio while minimizing taxes.
Breaking into the Income Property Market - Get started toward your real estate net egg.
Search the MLS for Income Properties - A custom tool for the savvy investor.
Glossary of Terms - What do all these words mean?

Investment in San Diego income property continues to yield tremendous returns. With vacancy rates at all time lows, and with building permit restrictions, income properties continue to demand higher and higher gross rent multipliers year after year in San Diego. With experience in evaluating all types of residential income property (single families, attached, 2-4 Unit, and Multi-Unit) San Diego House Hunting is prepared to offer first class service, analysis, and evaluation of all income property opportunities.

General Information

What is IRS 1031 Exchange?
A Tax Deferred Exchange is an extremely powerful investment technique which allows your tax dollars to remain invested in property rather than being paid out as income tax. Exchanging allows a buyer to leverage the deferred tax savings into alternative real estate properties that can produce additional cash outflows and create wealth.

Section 1031 of the Internal Revenue Code states "No gain or loss shall be recognized if property held for productive use in a trade or business or investment purposes is exchanged solely for property of a like- kind."

Single or multiple properties may be exchanged in the transaction. The first step of the exchange occurs when the relinquished property sells and the proceeds are held by a "Qualified Intermediary" such as Diversified Exchange of San Diego. The second step involves identification of replacement property and the held proceeds are released at closing. An Exchange Agreement and Assignments are utilized for all properties in an exchange.

Specific requirements defined in Section 1031 include a 45 day identification period, a 180 day period in which to close on a replacement property and the use of a "Qualified Intermediary" as the taxpayer cannot receive any proceeds from the sale of the relinquished property either actually or constructively.

Understanding how the exchange process will affect your real estate transaction is very important. Diversified Exchange provides assistance in identifying potential problems and areas of concern for investors who lack experience in exchanging.

Call us today to begin the most important part of structuring an exchange: Developing a clear and solid plan. Proper planning, goal setting, determining property profiles, financial analysis, tax analysis, and timelining are the key steps to success. We have the knowledge and experience that yields superior results - call us to leverage this today! (619) 497-1834.

Breaking into the Income Property Market
With interest rates low, and equities increasing so quickly, breaking into the income property market makes more sense now than ever! If you have never owned an income property and enjoyed the short and long- term benefits of this fabulous investment tool, you won't believe the returns. Creating a specific plan to purchase your first investment property is a key step to establishing a diversified retirement and supplemental income structure for the future. It is possible to purchase investment property *inside* your existing 401(k).ask us how! It's possible to borrow money from your current home (through refinance or through a 2nd mortgage) to leverage this equity across multiple properties. Teamworking with us to review all the financial, lending, tenant, maintenance, and strategic options is key. Count on us to provide no nonsense, simple, direct advice. You'll own your first income property very soon!

Search the MLS for Income Properties link to be provided shortly

Things to think about:

Where should my income property be located?
How much money can I put down?
What's my cash flow strategy (break even or positive cash flow)? Can I buy the property inside my 401(k)? How long do I plan to own the property? Who do I want as tenants? What's the current income on the property? How will the property be maintained? How will I handle property management? What are the costs of ownership aside from the mortgage, property taxes and insurance?
Do I want more units with generally lower rents, or fewer units with generally higher rents?

Glossary of Terms and History of Real Estate

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