1031 Exchange. San Diego to Portland

After owning a home in San Diego for over a decade, Trink and Steve, who had moved to Portland several years back, decided it was time to get more invested in the Portland market. When they originally moved from San Diego, they decided to rent out their home for several years, managing it from Portland.

This year it was time to finally make a move and sell that house. With the need to remodel their current Portland home, they would sell the San Diego property, use some of the money for their home remodel, and the rest for a few rental properties in Portland. And they could do this through a mostly tax-exempt 1031 exchange. This would allow them to realize most of the profit from the San Diego house without having to pay tax on it since most of it was being shifted to other rental properties very quickly thereafter.

What I like about this, is after investing so much into their original San Diego property, they were able to have it work for them. They sold that house for just under $1 million, bought 3 properties in Portland that cash-flowed for about $1.3 million, and pulled about $100,000 out of the San Diego home profit to do renovation work on their own house. I know, I know. In what math class do those numbers add up? They add up because Trink and Steve got a mortgage for those 3 investment properties here in Portland, which gave them more buying power. Even with these mortgages, we were able to find properties that cash flowed. And the money they flipped into those properties, they were exempt from paying tax on because of the 1031 exchange.

They now have 3 great investment properties here in Portland, and have the money to do some much needed renovation work to their own home.  Here is one of the three properties they bought. This one, a duplex in NE Portland.

1031’s can feel complex. I have a great team consisting of a 1031 attorney, 1031 mortgage broker, and escrow officer who have helped clients do this sort of thing for a long time. If you liked how that math equation worked out, or have any questions about how you can better leverage an investment property, I can help you with that.

Bobby Curtis

Principal Broker & Licensed Contractor

Meet Bobby Curtis.  Buyer’s agent. Listing agent.  Renovator. A gentleman hailing from the great state of Michigan, Bobby harnesses equal parts brains, brawn, and enthusiasm for every client and every project.  After graduating from the University of Michigan, Bobby embarked on a career in the pharmaceutical industry focusing on sales, marketing, and consulting.  In those five years, he was even lucky enough to roam around Europe for short stint in Geneva, Switzerland.  Nevertheless, the European dream paled in comparison to a quality brat and a good American brew, and alas, Bobby traveled back stateside where he traded in his suit for a high-quality flannel and some Carhartt’s.  After purchasing his first house to flip, Bobby rolled up his sleeves and started in on what would become his passion – transforming houses into homes by unleashing the beauty of each unique property. Since 2010, Bobby has bought and restored many houses in Portland, both large and small, with great success.  Armed with extensive first-hand knowledge of house restoration, Bobby offers his clients an exceptional eye to pinpoint property potential and value.  Whether you are searching for complete fixer property or a dialed-in and buttoned-up home, Bobby is happy to guide you through the process of finding your perfect place.  If you are selling your property, Bobby’s keen eye will help you showcase all of your property’s best features.  As an experienced buyer’s agent, listing agent, and renovator, Bobby is well-versed in the negotiation process. If you’re looking to get a sneak peak of Bobby in action, you can catch him (and his mom) on First Time Flippers, which will be airing on the DIY Network in March 2016.  That’s right, he helped his mom flip her first house . . . and he’s still here to talk about it. Check it out here Contact Bobby at: 503-502-3066 or bobby@livingroomre.com Licensed Contractor #215071

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• T: 503-502-3066
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• bobby@livingroomre.com