Free Analysis Tool • Instant Results

Turn Your 2.9% Return Into a 6-8% Return

Enter your Bay Area rental property and instantly see commercial properties you could 1031 exchange into—with higher cap rates, longer leases, and truly passive income.

Instant property matches from LoopNet based on your equity
See your current cap rate vs. what you could be earning
100% free equity analysis with no obligation
Get My Free Analysis Talk to Tim
Your data stays private
Results in 30 seconds
300+ investors helped

See Your Potential

Based on a $1.5M Bay Area rental with $1M equity

You Now
$29,000
Annual cash flow @ 2.9%
1031
You Could
$70,000
Annual cash flow @ 7%
2.4x
More Income
$0
Tax on Exchange
90%
Less Work
Calculate My Property →

No credit card required • Free forever

Scroll to learn more
1031 Exchange

Unlock Higher Returns With Your Equity

Exchange your low-performing residential rental into a high-yield commercial property with long-term tenants and passive income.

1
Your Property
2
Financials
3
Exchange Type
4
Target Market

Where is your current investment property?

Enter the address of the property you're considering exchanging.

What are your current numbers?

Help us understand your investment's financial performance.

—
Your Equity
—
Net Operating Income
—
Current Cap Rate

What type of property interests you?

Select your preferred commercial property type for the exchange.

Where would you like to invest?

Select the state where you'd like to find your 1031 exchange property.

1031 exchanges can be completed across state lines - invest anywhere in the US!

Searching LoopNet...

Finding top cap rate properties in your target market

The Hard Truth

Bay Area Landlords Are Losing Money

Being a residential investor in the Bay Area is a poor strategy to grow a portfolio. Appreciation with low cash flow is a form of golden handcuffs—most people hold forever and never earn meaningful returns.

2.9%
Avg. Cap Rate
Your equity earns less than a savings account
28
Hours Per Turnover
Time spent on repairs, cleaning & tenant search
6%
Avg. Vacancy Rate
Lost income during tenant transitions
50%+
Buyout Probability
Chance you'll pay to remove a tenant to sell
Current Reality

Residential Rental

  • Low 2-3% cap rates
  • Frequent tenant turnover
  • Constant maintenance calls
  • Tenant protection laws
  • Expensive buyouts to sell
1031 Exchange
Better Alternative

Commercial Property

  • 5-8% cap rates typical
  • 5-10 year lease terms
  • Tenant handles repairs (NNN)
  • Business tenants = partners
  • Truly passive income

Ready to unlock your equity's full potential?

Get a free analysis showing what your property could exchange into.

Free Equity Analysis Call Tim
1031 Exchange Education

Transform Your Residential Rental Into Passive Income

Discover how savvy Bay Area landlords are exchanging underperforming residential properties for high-yield commercial assets with long-term tenants and predictable cash flow.

Why Residential Landlords Are Making the Switch

Being a residential investor in the Bay Area often means high appreciation but minimal cash flow—a form of golden handcuffs. Learn how a 1031 exchange can unlock your equity and transform your investment strategy.

Defer 100% of capital gains taxes on your property sale
Exchange into properties with 6-8% cap rates vs. residential 2-3%
Secure NNN leases with corporate tenants for truly passive income
Eliminate tenant calls, maintenance, and turnover headaches

The 1031 Exchange Process

A tax-deferred exchange follows strict IRS timelines. Here's what to expect from start to finish.

1

Sell Property

Close on your relinquished property with a Qualified Intermediary

Day 0
2

Identify Properties

Submit up to 3 replacement property options in writing

Within 45 Days
3

Due Diligence

Inspect, negotiate, and secure financing for replacement

Days 45-150
4

Close Exchange

Complete purchase using QI funds before deadline

Within 180 Days
5

Enjoy Cash Flow

Start receiving passive income from your new asset

Day 181+
  • 100% Tax Deferral: Defer all capital gains taxes, keeping more money invested and compounding
  • Higher Cap Rates: Commercial properties typically yield 5-8% vs. residential 2-3%
  • NNN Leases: Tenants pay taxes, insurance, and maintenance—true passive income
  • Long-Term Tenants: 5-15 year lease terms with corporate-backed tenants
  • No Tenant Headaches: Eliminate late-night calls, evictions, and turnover costs
  • Geographic Diversification: Invest anywhere in the US, not just locally
  • Strict Timelines: 45 days to identify, 180 days to close—no extensions
  • Equal or Greater Value: Replacement must match or exceed sale price to fully defer taxes
  • Qualified Intermediary Required: Must use a licensed QI—cannot touch the funds
  • Learning Curve: Commercial real estate has different metrics and due diligence
  • Tenant Concentration: Single-tenant properties carry vacancy risk if tenant leaves
  • Taxes Deferred, Not Eliminated: Taxes are due when you eventually sell without exchanging

Commercial Asset Types

Explore the different commercial property categories available for your 1031 exchange, each with unique characteristics and investment profiles.

Industrial & Warehouse

Distribution centers, flex spaces, and manufacturing facilities. E-commerce growth has driven record demand for last-mile logistics properties.

5-7%
Typical Cap Rate
5-10 yr
Lease Terms

Retail & NNN

Single-tenant retail with national brands like Walgreens, Starbucks, or Dollar General. Triple-net leases mean tenants handle all expenses.

5-6.5%
Typical Cap Rate
10-20 yr
Lease Terms

Multi-Family

Apartment complexes and multi-unit buildings. Scale your residential experience with professional management and diversified tenant base.

4-6%
Typical Cap Rate
1 yr
Lease Terms

Medical Office

Healthcare facilities, urgent care centers, and medical office buildings. Recession-resistant with long-term healthcare tenants.

5.5-7%
Typical Cap Rate
7-15 yr
Lease Terms

Office Buildings

Professional office spaces from single-tenant to multi-tenant buildings. Look for stable tenants with long-term leases.

6-8%
Typical Cap Rate
3-10 yr
Lease Terms

Self-Storage

Climate-controlled and traditional storage facilities. Low management intensity with recurring monthly revenue streams.

5-7%
Typical Cap Rate
Monthly
Lease Terms

Ready to Unlock Your Equity?

Stop letting your hard-earned equity sit idle in an underperforming residential rental. A 1031 exchange could be the key to transforming your investment strategy and achieving true financial freedom.

Get Your Free Equity Analysis
45
Days to Identify

Strict IRS deadline to identify up to 3 replacement properties

180
Days to Close

Total timeline from sale to completing your exchange

100%
Tax Deferral

Defer all capital gains when done correctly

2-3x
Higher Cash Flow

Commercial typically yields 2-3x residential returns

Tim joined the Oldham Group @ Compass in 2025, adding 45+ agents & countless years of expertise and service to his business.

Explore
BuySellSearch homesLandlords
Company
BlogAbout usInvestContact
Contact
+14156919272
tim@mcmullen.properties

The Oldham Group is a team of real estate agents affiliated with Compass. Compass is a licensed real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to the accuracy of any description. All measurements and square footage are approximate. If your property is currently listed for sale this is not a solicitation.

DRE #
02016832
Chat with us on WhatsApp