Don't evaluate replacement properties in isolation. Compare them side by side on the factors that actually matter: cash flow, risk, closing feasibility, and alignment with your goals. This worksheet structures that comparison.
Instructions
Complete one column per property. Compare at least 3 candidates. Score each property 1-5 on qualitative factors, then tally for an overall ranking.
Financial Comparison
Metric | Property A | Property B | Property C |
|---|---|---|---|
Purchase price | $_____ | $_____ | $_____ |
Down payment / exchange equity applied | $_____ | $_____ | $_____ |
Mortgage amount | $_____ | $_____ | $_____ |
Interest rate | _% | _% | _% |
Monthly mortgage payment | $_____ | $_____ | $_____ |
Gross annual rental income | $_____ | $_____ | $_____ |
Annual operating expenses | $_____ | $_____ | $_____ |
Net operating income (NOI) | $_____ | $_____ | $_____ |
Cap rate (NOI / price) | _% | _% | _% |
Annual cash flow (NOI - debt service) | $_____ | $_____ | $_____ |
Cash-on-cash return | _% | _% | _% |
Annual depreciation deduction | $_____ | $_____ | $_____ |
Risk and Quality Assessment (Score 1-5)
Factor | Property A | Property B | Property C |
|---|---|---|---|
Location quality / growth potential | /5 | /5 | /5 |
Tenant credit quality / stability | /5 | /5 | /5 |
Remaining lease term (longer = higher) | /5 | /5 | /5 |
Building condition / capex risk | /5 | /5 | /5 |
Market vacancy rate (lower = higher score) | /5 | /5 | /5 |
Diversification benefit vs. current portfolio | /5 | /5 | /5 |
Management complexity (less = higher score) | /5 | /5 | /5 |
Appreciation potential | /5 | /5 | /5 |
Total quality score | /40 | /40 | /40 |
Closing Feasibility
Factor | Property A | Property B | Property C |
|---|---|---|---|
Estimated days to close | _ days | _ days | _ days |
Can close within your Day 180 deadline? | Y/N | Y/N | Y/N |
Financing pre-approved? | Y/N | Y/N | Y/N |
Inspection completed? | Y/N | Y/N | Y/N |
Title clear? | Y/N | Y/N | Y/N |
Seller motivated / cooperative? | Y/N | Y/N | Y/N |
1031 Exchange Compliance
Factor | Property A | Property B | Property C |
|---|---|---|---|
Meets minimum value requirement? | Y/N | Y/N | Y/N |
Meets minimum debt requirement? | Y/N | Y/N | Y/N |
Same entity acquiring? | Y/N | Y/N | Y/N |
Held for investment / business use? | Y/N | Y/N | Y/N |
Overall Ranking
Property A | Property B | Property C | |
|---|---|---|---|
Cash flow rank | #___ | #___ | #___ |
Quality score rank | #___ | #___ | #___ |
Closing feasibility rank | #___ | #___ | #___ |
Overall preference | #___ | #___ | #___ |
Pro tip: Your best property on paper may not be the best for your exchange if it can't close in time. Weight closing feasibility heavily - a good property that closes on Day 120 beats a great property that falls through on Day 175.