We often get clients looking to exchange one rental property for another, we call this a 1031 exchange. By definition, well, you can read the full definition here. It basically allows an investor to “defer” paying capital gains taxes on an investment property when it’s sold. There you go. All you really need to know.
Why am I telling you this? Well, we just did one and it was pretty fun and we thought it would be nice to share. It started out with a loft in the SOMA on Shipley St. and ended with a beautiful home in the Outer Richmond on 35th Ave. It took us 2 weeks to prepare the loft for sale. We had it fully repainted along with the cabinets and staged. Once listed on the MLS, we got it in contract within a week. I know, only in SF.
Here’s how it looked all staged and ready to go.
Back to the story, we hit the ground running and went to just about every open house in the Sunset and Richmond, put in a few offers and tah dah, got in contract. I mean, it wasn’t that easy, but we got it done. Selling is the easy part, but buying in San Francisco can be a real beach. Twenty one days later we closed and as Alex says were “done and dusted”. At the end of the day, we saved the seller about $70K in capital gains taxes. Not a huge amount of money by SF standards but nothing to scoff about. They got to put a new Tesla in their garage and we got to help them do it. What a great story.
A few shots of the purchased property. If you would like to see more of this fantastic home, click here for the full gallery.
That’s how we do it here. Hard work, dedication, and efficiency for all of our clients. Let us know how we can help you by contacting us today.
This post was written by Keenan Brown of The Front Steps.
Living in the Sunset and Richmond Districts for close to two decades has given Keenan an insider’s look at the happenings of San Francisco’s westside and a firm pulse on the local real estate market. You can reach him directly at Keenan@thefrontsteps.com or on his mobile at 415-505-4572.
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–Shipley Loft– Keenan Brown
–Richmond Home on 28th Ave – Keenan Brown