Cash Flow Today. Appreciation Tomorrow
Rescia Properties / Investment Strategy
1031 Exchange & Investment Vehicles
Defer capital gains taxes, preserve your equity, and redeploy your capital into the right replacement vehicle for your long-term goals.
What Is a 1031 Exchange?
Keep More of Your Capital Working for You
When you sell an investment property, a 1031 exchange allows you to defer capital gains taxes by reinvesting your proceeds into a “like-kind” replacement property. There are a lot of different investment vehicles and avenues to explore when determining where to invest your money.
For IRS code section 1031 purposes, “like-kind” simply means investment real estate to investment real estate. So as long as you held your down-leg property for investment purposes and intend to hold the replacement property for investment purposes, it likely qualifies. Below are some common up-leg exchange scenarios — we are happy to discuss any of these or other ideas you might have, and can provide financial modeling demonstrating what the numbers would look like in your specific situation.
Examples of Property Types (Fee Simple)
Apartments
The most common exchange destination. Strong cash flow, built-in demand, and long-term appreciation make multifamily a natural fit for most investors.
Student Housing & Senior Housing
Industrial
Warehouses, distribution centers, and flex industrial properties with strong demand and rising rents across most major markets.
Self Storage
Recession-resilient with low management intensity — delivering reliable occupancy and consistent cash flow across economic cycles.
Retail
A spectrum of retail options offering predictable, long-term income streams with varying levels of management involvement.
Single Family Home
A valid and often overlooked option — ideal for investors prioritizing simplicity, local market knowledge, or a more hands-on approach. For investment purposes.
Other Types
Additional property types worth exploring depending on your goals, market, and exchange requirements.
The vast majority of apartment sellers executing a 1031 will trade into more apartments or move into the zero-management Triple Net (NNN) asset class — while a select few move to more nuanced subtypes like mobile home communities or single-family homes. Each property type has its pros and cons, and we are happy to discuss this with you in detail as you consider your exchange to find the best fit for your situation.
Beyond Direct Ownership
Alternatives to Fee Simple
For investors who want more flexibility, truly passive income, or help satisfying complex exchange requirements, there are several structured alternatives that can qualify as valid 1031 replacement vehicles. One key caveat: you must hold title to your replacement property in the same way as your down-leg. Both DSTs and TICs satisfy this requirement. Click each option below to learn more.
A large grouping of many investors pooled into a single institutional-grade asset somewhere in the country. Each investor is a limited partner and returns can be strong. A DST can help satisfy an exchange when the down-leg is overleveraged and the debt is difficult to replace in a traditional exchange.
The downside: these structures are very large and you have little to no voice or contact with the operator(s). It tends to feel more like owning a REIT than a traditional real estate investment.
One important caveat of the 1031 exchange is that you must hold title to the replacement property the same way as your down-leg. Both DSTs and TICs satisfy this requirement. A TIC is limited to 35 partners, so they tend to be smaller and more intimate — and everyone has a vote, a say, and a role.
This can be a great structure with the right partners. However, partners can also become a liability when the time comes to sell, refinance, or execute another exchange down the road.
Much like a DST, you are passively investing — this time alongside a General Partner (professional operator/investor) who sources the deal, puts every piece in place, and runs and oversees the entire investment lifecycle. This is typically called a local syndication, though the deal itself may be located wherever the opportunity exists.
The General Partner provides updates and returns on your invested capital on a quarterly or bi-annual basis. This structure has a much more intimate feel — you will have direct access to the operator. Deals tend to fall between private client and institutional price points, and can often be tailored to specific investors who represent a meaningful portion of the equity.
It is important to know the Sponsor/General Partner’s investment history and gain a genuine comfort level prior to engaging. This is the model we operate at Rescia Properties — and our track record, transparency, and investor alignment speak for themselves.
Not Sure Which Vehicle Is Right for You?
Every exchange is different. We offer complimentary consultations and can provide financial modeling showing exactly what the numbers look like across any scenario you’re considering.