Strategic Investment Opportunity: The Duplex on C Street and the Power of the 1031 Exchange (Cash/Financed Acquisition)

Thank you for your interest in The Duplex on C Street, located at 755 C Street, Hawthorne, NV 89415.

This property represents an excellent opportunity for stable cash flow and long-term appreciation in the evolving Hawthorne market.

As a financial strategy, structuring this acquisition as a 1031 Like-Kind Exchange is highly recommended. If you recently sold or are planning to sell another investment property (the "Relinquished Property"), using a 1031 Exchange to acquire the Duplex could allow you to defer the capital gains tax that would otherwise be due on the sale. This strategy is incredibly powerful because it lets you immediately reinvest the full pre-tax amount into your new asset.The 1031 Advantage for This Property

To successfully execute a 1031 Exchange, the Hawthorne duplex would serve as your Replacement Property. By identifying and acquiring this duplex, you can continue to move capital efficiently through the real estate market without the immediate drag of federal and state taxes, maximizing the power of compound growth in your portfolio.

There are two critical deadlines to be aware of, which are strictly enforced by the IRS:

• 45-Day Identification Period: You must formally identify this property (and any others) as a potential Replacement Property within 45 days of closing on your Relinquished Property.

• 180-Day Exchange Period: You must close on the acquisition of the Duplex within 180 days of closing on your Relinquished Property.

Given these strict timelines, it is crucial to move quickly if you wish to proceed with this tax-deferred transaction. Furthermore, the value of the replacement property must be equal to or greater than the value of the relinquished property to fully defer all taxes.The Duplex on C Street: Investment Highlights

Beyond the significant tax advantages of the 1031 Exchange, this property offers compelling financial fundamentals and ease of operation:

1. Direct Acquisition (Cash or Traditional Financing): This investment is structured as a straight purchase, allowing you to use either the cash proceeds from your Qualified Intermediary (QI) in a 1031 Exchange or secure conventional financing. This straightforward transaction facilitates a clean and timely closing, which is essential for meeting the strict 1031 Exchange deadlines.

2. Projected Return on Investment (ROI) and Stability: The Duplex is poised for immediate profitability and stability:

   • Rental Income: $1,700 monthly

   • Operational Stability: The property features long-term leases already in place, ensuring income stability from day one.

   • Ease of Management: A local, trusted maintenance contractor is available, allowing for streamlined, low-touch management, ideal for an out-of-area investor.

This structure allows you to immediately secure a high-performing asset and defer significant tax liabilities, maximizing your Return on Investment potential.

Next Steps and Professional Guidance

To ensure a seamless 1031 process, you must immediately engage a Qualified Intermediary (QI) to facilitate the exchange. The QI holds the proceeds from the sale of your Relinquished Property to maintain the tax-deferred status and provide funds for this acquisition.

Important Disclaimer: I am a real estate professional, not a tax advisor. Before making any decisions, you must consult with a qualified tax professional or CPA regarding your specific situation and the eligibility of your prior sale for a 1031 Exchange.

Please contact me at your earliest convenience so we can prepare the necessary documentation to identify The Duplex on C Street as your Replacement Property and finalize the purchase agreement.

Please feel free to contact me to start this 1031 Exchange process.

Sincerely,

Marvin Tanner / Managing Member / California Nevada Property Renals LLC (775) 358-6527