Transcript for How We Increase Our Investors Cashflow Video
In this video, we discuss how we increase our investors’ cashflow using 1031 exchanges during the era of COVID19.
Hello everybody, I’m Rusty, and you’re about to watch a short video outlining one of our most popular investment strategies for creating high income from a rental property. I hope you enjoy it.
Now, another scenario was a luxury penthouse condo that one of my dear clients, and we’re very good clients, purchased back at the bottom of the last recession in 2011. They purchased this property for $700,000, and we decided to help them sell it just about a year ago. We were able to successfully sell it for over a million dollars and it was a really quick sale, actually, it was on the market for only two weeks. What our client decided to do was they realized that we were at the peak of the California market, and they decided to do a 1031 exchange and trade into 17 single-family rentals that were fully managed out of state.
The portfolio comprised of three of our single-family rentals that were fully rehabbed in Indianapolis, and the remainder of the portfolio was allocated towards 14 manufactured homes in Houston, Texas. The client was making about $40,000 net per year off of their single-tenant, and in exchange, they have 17 tenants in 17 separate single-family rentals and diversified themselves in Indianapolis and in Houston. The cashflow went from $40,000 per year net to $115,000 per year net totally passive, and we were able to multiply their income stream by two and a half times just from one single 1031 exchange.
And so this client is actually gearing towards doing another 1031 exchange and the following suit to the previous client where they would be investing in a commercial triple net lease property with a long-term lease, followed by a portfolio of single-family rentals. That’s a really common strategy, we’re doing a lot of these right now. And again, our clients have given us some feedback that we are indeed in the right space and the right strategy and mindset, especially with COVID-19.
Great. Thank you for watching. I hope you found that informative, and if you’re interested in seeing other strategies we use for investors to maximize their cash flow, please click on the link in the description down below, and hopefully, you’ll enjoy it. Thank you.