Point B Properties — Prepared for Jessica
  
Your Mozart St. Building Is Worth More Than You Think — Just Not In The Way You Think
  
A simple breakdown of what holding vs. selling actually means for your goal of owning 10–12 units.





  
The Real Question
  
It's not "Is the price good?" — it's "Does holding get you there faster?"
  
You've built real equity in Mozart St. The question worth answering isn't whether $450k–$470k is exciting. It's whether sitting on a 2-flat for the next 5 years accelerates or delays your path to owning a 10–12 unit building. Here's how the math plays out.




  
Side by Side
  
Hold Mozart vs. Sell + Trade Up

  

    

      

        
Metric
        
Option A: Hold Mozart
        
Option B: 1031 into 7-Unit
      
    
    

      

        
Current Asset Value
        
$450,000
        
$1,050,000 ($150k/door)
      
      

        
Unit Count
        
2 Units
        
7 Units
      
      

        
Equity Requirement
        
$150,000
        
$157,500 (15% Down)*
      
      

        
Annual Appreciation (3%)
        
$13,500/yr
        
$31,500/yr
      
      

        
Loan Qualification
        
Personal (Taxes/W-2)
        
Institutional (DSCR/Income)
      
    
    

      
* With a stabilized 7-unit, portfolio lenders can close with 15% down plus reserves — putting your Mozart equity to work immediately.
    
  

  

    
The difference isn't just unit count. A 7+ unit building qualifies for commercial financing — meaning the bank stops looking at your personal income and tax returns. The building qualifies itself. That's a different world from where you are today.
  




  
How It Works
  
Three steps to get from Mozart to 10+ units

  

    

      
1
      

        
List Mozart, maximize price
        
We target $425k–$475k on the open market. I'm the only broker in Chicago who specializes in both the brokerage and development of frame 2–4 units — which means I know exactly who the right buyer is and what they'll pay.
      
    
    

      
2
      

        
Structure a 1031 Exchange
        
By rolling the proceeds into a new property within 180 days, you defer capital gains tax entirely. Your equity works for you — not the IRS.
      
    
    

      
3
      

        
Acquire a stabilized 7–10 unit
        
Your ~$150k in equity becomes the down payment on a $1M+ commercial asset. One move. Done.
      
    
  

  

    
The financing advantage nobody talks about
    
At 7+ units, you cross from residential to commercial lending. The bank's only question becomes: does the building's income cover the mortgage? If yes, the loan is approved — regardless of your W-2s, your DTI, or your personal tax situation.
    
✓  No more qualifying on personal income   ✓  Debt stays in the LLC, not attached to you personally
  




  
Ready to run the numbers together?
  
This is just the overview. I can put together a full scenario model specific to Mozart — your actual equity, your actual tax situation, and what a target building would look like.
  Text Rob to Get Started
  
Or text directly: (312) 663-8693



  Prepared by Robert Linn  ·  Point B Properties

  This is not tax or legal advice. Consult your CPA before structuring a 1031 exchange.