Want More Cash Flow? DON'T Pay Off Your Rental Property

If the investor performs a 1031 exchange as described, their portfolio's return on equity will increase from 6.5% to 7.2%.

If the investor sells duplexes and uses the proceeds to pay off debt on four single-family rentals, the portfolio's return on equity will decrease from 6.5% to 5.7%.

If the investor sells duplexes and invests the $700,000 proceeds into private credit funds averaging 10% annual cash-on-cash return, the portfolio's return on equity will increase from 6.5% to 7.2%.

If the investor sells duplexes and invests the $700,000 proceeds into private credit funds averaging 10% annual cash-on-cash return, the portfolio's annual cash flow will increase from $81,000 to $126,000.