Client has been a long-time investor and current owner of several small/mid-size apartment properties and a mixed-use residential/commercial property. Client utilizes both hired (payroll) onsite property managers as sell as third-party professional property management firms. Client was interested in reinvesting some idle cash and exchanging one of his currently owned properties. The objectives moving forward were wealth preservation, conservative capital growth, increased cash flow and a “newer” building with more predictable operating expenses (less repair/maintenance and capital replacement outlay). Ease of managing by a third-party management company was also a priority.
Long-time owner/operator of several smaller apartment properties in Portland-metro. Client has over the years strategically sourced built-up equity in owned properties and purchased additional income-producing real estate of various property types. This property was refinanced (cash-out) several times over the years, then sold in late 2018. Client used funds to complete a 1031 Exchange. A newer condo quality apartment building was acquired.
Client has been a long time investor in a variety of residential rental units including small multiplexes and small/mid-size apartment properties. Client has for the most part directly managed owned properties with assistance from hired onsite property managers, where needed. Client is interested in gradually transitioning to a more “hands-off” situation. Sufficient wealth has been achieved over the years lessening the need for continued strategies that were largely geared toward maximizing capital (equity) growth over the long haul, sometimes at the expense of near-term current cash-flow. The objectives moving forward are wealth preservation, increased cash flow, tax advantaged ownership “structure” and more free time to travel and enjoy the fruits of his labor.
Client interest was in reallocating funds in the stock market and purchasing another income-producing investment property. Client is a passive investor, hence a suitable property would be one that either required minimal active owner management or could effectively be managed by a property management firm. Newer/quality retail (single & multi-tenant) and apartments were the likely target property types.