- Do not be too motivated to buy a property using a 1031 exchange. Many times, it is better to just pay the taxes and find a better deal without time constraints.
- Falling “in love” with an investment property never ends well. As they say, “breaking up is hard to do.” My suggestion is to never start the relationship.
- NEVER count on appreciation to make your investment a good one. ALWAYS use cash flow as your gauge.
Year Total Cash Flow
On this deal, assume the cash flows occur at the end of the year and that there is only 1 payment per year. Sometimes the best learning experiences come long after college is over!