104% or 2.04x cash flow increase

DJ had been renting a home in Laguna Niguel for twenty-plus years. His property had appreciated tremendously over the years and until the last headache of a tenant his management was minimal. After getting the tenant out and doing some updates to the home we listed it and sold it for the highest per square foot price in the neighborhood at the time. We helped set up a 1031 exchange and reviewed hundreds of properties before we narrowed it down to a half dozen. We compared and contrasted investments and ultimately purchased the one we collectively felt fit his investment goals best. The new investment is a NNN retail building on a large lot that brings in $9,000/month with zero landlord responsibilities, an operator that has been at the property for more than 30 years and has 7 years left on the lease which includes annual increases. Higher cash-flow, longer lease commitment, less management.