Maximizing After-Tax Income with Multifamily DSTs

Looking to boost after tax income in your 1031 exchange consider moderately leveraged multi-family DSTs over debt-free net lease DSTs?

Here’s why debt-free net lease DSTs like dollar stores or pharmacies offer initial stable predictable income but that income may be fully taxable and it depends on one lease.

Multifamily DSTs spread income across hundreds of tenants reducing risk moderate leverage amplifies tax benefits you could increase your depreciation potentially shielding all income from taxes for years.

Debt-free net lease DSTs like a single tenant Walgreens may offer initial stability but rely on one lease with little depreciable basis left most income is taxable reducing your take-home cash.

A 6% yield on a debt-free property that is fully taxable may only leave you with 4% after taxes.

While a moderately leveraged multifamily DST producing 4.5% could allow you to keep the full 4.5% in your pocket multi-family’s diverse tenants and shorter leases also adapt faster to market shifts sustaining cash flow.

Corcapa selects leveraged multi-family DSTs in high demand markets balancing risk and reward for better after tax returns.

So if you’re looking to maximize cash flow and reduce tax drag in your 1031 exchange, moderate leverage in multi-family DSTs might be the edge you’re missing.

Contact us at (949) 722-1031 or schedule a consultation to explore your options.

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About 1031 DST Solution Presented by Corcapa 1031 Advisors

Founded in 2011, Corcapa 1031 Advisors is a boutique financial advisory firm specializing exclusively in 1031  exchanges and tax mitigation strategies. A recognized leader in alternative real estate investments, our firm focuses on Delaware Statutory Trusts, Tenant-in-Common programs, sole-ownership transactions, and 721 UPREIT structures. Corcapa 1031 Advisors has successfully guided hundreds of clients through thousands of investments, facilitating over $1 billion in completed exchanges. With a dedicated focus on real estate solutions, Corcapa 1031 Advisors is a trusted partner for registered investment advisors and financial advisors nationwide who frequently refer clients seeking expert guidance on tax-deferred exchange strategies.

Securities offered through DAI Securities, LLC, Member FINRA/SiPC

 

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