• Don Meredith

#1 Reason People are Choosing DSTs as Replacements for Their 1031 Exchange

Updated: Apr 8

Delaware Statutory Trusts solve a lot of the headaches of owning and managing rental properties, but real estate investors are looking at them for more reasons than just that. And many are getting involved through 1031 exchanges. link to online article on Kiplinger.com ...

#1 Reason people are choosing DSTs as replacements for their 1031 exchange: Potential Better Overall Returns and Cash Flows

Many real estate investors may not be earning the cash flows they think they are. An investor wanting to determine their cash flows can take their net rental income from their Schedule E, add back depreciation, then subtract the principal portion of their payment. Next divide that number into the property market value. For example, if one had net rental receipts of $50K and $10K depreciation, and also $10K of principal payment, then the net number would be $50K. If the property value is $1 million then the investor would have a 5% cash flow. DSTs could potentially offer a better cash flow and risk return profile while at the same time offering an investor a passive alternative.


The above article contains information extracted from an article published on Kiplinger.com called "Top 10 Reasons Real Estate Investors Are Jumping into DSTs by: Daniel Goodwin - March 21, 2021. link to online article

Contact Don Meredith of Tactical Income, to learn more about Delaware Statutory Trusts (DSTs) and 1031 Exchanges at: don@lightpathcapital.com or (619) 726-6100.

Securities through LightPath Capital, Inc., Member FINRA/SiPC, 1560 E. Southlake Blvd., Suite 100 Southlake, TX 76092 925-899-1709 Direct 214-734-2957 Office


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