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Case study

Case Study: Rental Property Exchange With DSTs

At Breakwater Exchange, we simplify complex 1031 exchanges by creating personalized, diversified solutions for every investor. See how our proven DST strategies made retirement smoother for one Southern California couple.

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Retiring Smarter and Eliminating Landlord Stress With Passive Income

John and Cindy, a couple in their 60s, had long relied on rental properties in Southern California for income. One property in particular had become a burden: aging infrastructure, declining tenant quality, and rising maintenance costs posed a challenge. Faced with the choice to invest significant capital into renovations or accept a large tax bill upon sale, they were stuck. Though they’d heard of 1031 exchanges, the timing and complexity made them hesitant. They wanted to transition into a passive investment while still protecting their gains and income stream. They just didn’t know how to start.

Strategic Diversification Through DSTs: A Plan With Purpose

Working with Breakwater Exchange, John and Cindy transitioned the proceeds from their property into three professionally managed DSTs. Each asset was institutional-grade, spread across multiple states, and included a unique investment strategy, creating a blend of stability and growth potential. The plan removed the stress of tenant management and eliminated the exchange risk they were worried about.

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Outcome

The Results: More Income, Less Stress, Greater Freedom

John and Cindy’s transformation wasn’t just transactional; it was life-changing. By reallocating their equity into diversified DSTs with Breakwater Exchange, they moved from managing a single aging property to benefiting from professionally operated assets in multiple regions. Their annual income grew from approximately $45,000 to over $60,000, with none of the day-to-day responsibilities. Most importantly, they gained peace of mind. Without tenants to manage or repairs to oversee, they now enjoy more time together in retirement, while their portfolio continues working for them behind the scenes.

Unlock Hands-Off Income With Breakwater Exchange

Let our team guide your 1031 exchange into a future of passive income and strategic diversification. Breakwater Exchange delivers turnkey DST solutions customized to your goals.

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FAQs About Our DST Exchanges Strategies

What if I want to do a traditional 1031 exchange into DSTs but don’t know where to start?

Breakwater Exchange offers end-to-end guidance to help you execute a compliant, timely, and seamless 1031 exchange into one or more DSTs . We align property options to your goals while handling the details, so you don’t have to.

Can I use a DST strategy even if I want to take some cash out from my sale?

Yes. Breakwater Exchange works with investors who want partial cash-out options by helping structure a “boot” strategy that defers a portion of capital gain taxes through a partial DST investment.

What if I want to keep direct title to my property instead of going fully into DSTs?

Breakwater Exchange also offers hybrid solutions that allow for combining DSTs with directly titled property acquisitions . This gives you more flexibility while still utilizing the 1031 exchange benefits we’re known for.

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Breakwater Exchange’s expert guidance helps you maximize returns while minimizing tax exposure, so you can invest with clarity and confidence.

years of experience: 20+
in DST transactions: $1B+
states licensed: 50
vetted national sponsors: 8