Actually, Chicago’s North Side.
That’s what this MBA candidate did, and apparently he’s had luck on his side.
He bought a three-family rental for $285,000, put in $8,000 in repairs, and held onto it for almost four years.
Now, he thinks he can get $485,000. The neighborhood has been “gentrified” – it even has a Starbucks, now.
The payoff: Potentially $177,037.
And, the kicker: Mr. Burkons does not expect to pay capital-gains taxes because he plans to buy a new property under the IRS’s 1031-exchange provision.
I love 1031-exchanges!
Complete story: An M.B.A.’s Rental Offers a Lesson in Investing – By Jane Hodges, The Real Estate Journal