Orange County 1031: traded a tired duplex for a stabilized quadplex

Our client had owned a Tustin duplex for fourteen years. The basis was low, the equity was high, and the property needed a roof, plumbing, and a plan for two aging tenants. Selling outright would have triggered a six figure capital gains bill.

We listed the duplex, identified three replacement quadplexes within the forty five day window, and closed on the strongest of the three before the one hundred eighty day deadline. The replacement is a fully renovated 2018 Anaheim quadplex with four market rate leases and no deferred maintenance.

Net result: roughly the same monthly cashflow on day one, no capital gains hit, and a property with another fifteen plus years of useful life before major capex.