NSJ owned a beautiful luxury home on the Coast in Orange County, CA for nearly 15 years. After doing a full remodel both inside and out NSJ felt the area had hit a peak in home appreciation and value and felt it would be more advantageous to look at alternative investments that could yield a higher return in the future.
After closing on their home, we set up a 1031 exchange and researched hundreds of properties, had dozens of discussions with sellers and seller’s agents and submitted around ten offers. After some back and forth with counter offers we narrowed it down to three properties that we felt had the greatest risk reward. The three properties each had a story, two came with very strong credit tenants who have invested heavily in the properties and see these locations and important to their business, set annual increases with years left on the leases and value add potential in the mixed use retail.
SOLD Single Family RESIDENTIAL Rental for $8,100,000 after closing costs proceeds were $7,768,261. PURCHASED THREE COMMERCIAL NET properties for $7,360,000. Diversified investments across different geographies and product types, more than doubled cash flow.
| SOLD | PURCHASED | PURCHASED | PURCHASED | |
| SFR Rental | NNN MedOffice | NNN MedOffice | Mixed Use Retail | |
| Sales/Purchase Price | $7,768,261 | $2,710,000 | $3,300,000 | $1,350,000 |
| INCOME | ||||
| Gross Monthly Rent | $22,000 | $17,938 | $19,412 | $9,300 |
| Gross Annual Rent | $264,000 | $304,127 | $232,944 | $111,600 |
| OPERATING EXPENSES | ||||
| Property Taxes | $30,389 | Pass throughs | $8,190 | $14,580 |
| Insurance | $8,500 | Pass throughs | Paid by tenant | $3,500 |
| Maintenance/Misc. | $3,500 | Pass throughs | Paid by tenant | $4,000 |
| HOA | $2,100 | Pass throughs | Paid by tenant | $4,500 |
| Total Op.Ex. | $44,489 | $130,767 | $8,190 | $26,580 |
| Net Income | $219,511 | $173,360 | $224,754 | $85,020 |
| Net Income Totals | $219,511 | $483,134 |
