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The End Is Near: My Experience in the Fifth Month of Selling a Brooklyn Condo via 1031 Exchange

Updated: 4 days ago

In the coming days, our condo in Brooklyn, New York will be listed for sale as we embark on the first phase of our meticulously planned 1031 exchange. This transition holds the promise of significantly increasing our monthly income from $300 to a hopeful $4,000 to $5,000, representing a major step towards achieving our investment goals.

 

For those just joining us, we're documenting the highs and lows of our journey, all in pursuit of a better return on our investment. As we near the end of the selling phase this month, our previous tenants have vacated, allowing us to spruce up the property for listing. Meanwhile, we've been tirelessly evaluating potential purchases, absorbing the steep learning curve that comes with it.

 

Here are some key lessons we've gleaned recently:

 

Timing is Crucial: Despite meticulous planning, opportunities may arise sooner than expected, necessitating quick decisions. Every missed opportunity serves as a valuable learning experience.

 

Not Every Seller is Amenable to Sale Contingencies: While we recognize the value of our Brooklyn condo, not all sellers share this perspective. Building trust through a comprehensive comparative market analysis can help alleviate seller concerns.

 

The Importance of Comparative Market Analysis (CMA): A CMA provides a strategic overview of the property sale, including pricing strategy, comparable sales data, and market trends, enhancing our negotiation position.

 

Exploring Diverse Investment Options: Recognizing the abundance of investment opportunities has eased the pressure of finding the perfect deal. Our goal is a solid, cash-flowing investment to transition our funds effectively.

 

Thorough Underwriting is Essential: A close call with flawed underwriting underscored the importance of meticulous financial analysis. Double and triple-checking calculations is imperative to avoid costly errors.

 

Consider Triple Net Leases: Exploring triple net properties offers the allure of stable, long-term income streams with minimal landlord responsibilities, providing peace of mind and consistent returns.

 

As we navigate the complexities of the 1031 exchange, we remain focused on securing a favorable outcome while embracing the challenges and opportunities that arise along the way.


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