Key takeaways
- Hold for cash flow + appreciation is default.
- 1031 into bigger asset compounds equity.
- Sell when ROE drops below alternatives.
- Second refi after 5–7 years extracts new equity.
- Owner-financing for retirement-stage exits.
Core concepts
Hold
Continuous cash flow + appreciation + tax shelter.
1031
Roll into multifamily or higher-grade SFR.
Refi #2
Pull new equity as appreciation accumulates.
Sell
Capture gain when ROE no longer competitive.
Step-by-step framework
- 1Annual ROE per BRRRR.
- 2Plan exit scenarios 24 months out.
- 3Engage QI before any 1031.
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Common mistakes to avoid
- Selling too early.
- Holding too long after ROE collapse.
- No exit plan documented.
Frequently asked questions
How long to hold?
5–10 years typical; 1031 chain can extend indefinitely.
1031 from SFR to multi?
Yes — like-kind requirement is broad.
Second refi timing?
5–7 years post-first refi.
Owner-financing rates?
5–8% with 20–30% down typical.
Action checklist
- ☐ROE per property.
- ☐Exit scenarios documented.
- ☐QI relationship established.
- ☐Refi calendar.
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