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 | OR

He/Him

Meet Bobby Curtis.  Buying agent. Listing agent.  Renovator.

A down-to-earth Midwesterner, Bobby graduated from the University of Michigan, and headed to Portland in 2004. He began 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 assignment in Switzerland. When he came back to Portland he took some time to discover what he was really interested in. Homes. More specifically, architecture, restoration, and entrepreneurship. After getting his real estate license in 2011, he purchased his first house in Portland to restore, redesign, then sell. Bobby rolled up his sleeves and started in on what would become his real career interest – transforming distressed houses into stand out homes by discovering the beauty of each unique property. Since that time Bobby has bought and restored several houses each year in Portland, both large and small, with great success.  Armed with extensive first-hand knowledge of restoration, Bobby offers his clients an exceptional eye to pinpoint property potential and value.  Whether you are searching for a complete fixer property, or a shining, buttoned-up stunner, he is skilled and enjoys guiding clients through the process of finding the perfect place. If you are selling your home or investment property, Bobby showcases his clients homes like he was selling his own. That kind of attention to detail will present all of the property’s best features.  It's because he has bought and sold properties of his own each year, that he better understands what it’s like to be in his clients shoes, and to navigate through the current real estate market. As an experienced broker and professional, Bobby is able to negotiate the best price and terms for his clients. If you’re looking to get a sneak peak of Bobby in action, you can watch him on an episode of First Time Flippers on the DIY Network, where he helped his mom flip her first house. Or you can catch him on KATU’s Afternoon Live daytime talk show once a month, discussing Portland Real Estate and House Restoration. Check it out here Contact Bobby at: 503-502-3066 bobby@livingroomre.com Licensed Contractor #215071

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