A. You should consider investing in a Duplex, Triplex or 4 Unit apartment at first. This will provide a 'platform' for you to learn he 'ins' and 'outs' of management of multiple properties at the same time. It will be an excellent 'primer' for future ownership of multiple units such as a 12 Unit or 24 Unit or much larger apartment building.

A. There are four categories, all of which qualify with I.R.S. as 'Improved Real Estate'.

1. Apartments;
2. Industrial;
3. Office and
4. Retail.

An Apartment could range in size from 2 to 200 or more units. An example of an Industrial property would be a United Van Lines warehouse. An Office building could run the gamut from an Office Condominium to a Class A structure such as 1999 Broadway in Denver, CO. Retail could be a small center like Cherry Crest Plaza at S. University and E. Orchard Road in the Denver area or a huge center such as Cherry Creek Mall in Denver, CO

A. Lets assume that you have followed your Tax Accountant's advice and have taken I.R.S. allowed itemized deductions for depreciation, loan interest expense, repairs, vacancies, etc. Also, you have depreciated these properties over the years. If you just sell these properties and collect your equity (increased from years of ownership) then you trigger a sizeable tax consequence with the I.R.S. and the State. In Colorado, the tax on the monetary gain from the sale of a property 'held for investment' is 4.6%. The Federal Tax Consequence is 15%. You will want to consider an I.R.S. 'Code 1031' Tax Deferred Exchange.

A. The I.R.S. allows the real estate investor 180 days from the date of closing on the sale of their present property to close on the purchase of replacement property. All net proceeds from the sale of 'Investment Property' must be turned over to an I.R.S. registered 'Qualified Intermediary' for deposit. The proceeds from the sale of the old property must remain in the Intermediary's accounts until the closing on the new 'replacement' property. From the date of closing the sale of the old property, the investor must identify a 'replacement' property within 45 days. Up to 3 replacement properties may be identified and the purchase price must exceed the sale price of the old property.

A. We would suggest that you look at NNN, Pure Net and Absolute Net Investments. Some examples of properties which require less intense management would be:

1. A single tenant or 2-tenant warehouse;
2. A Wendy's Restaurant;
3. A Kinder Care Child Care Center.

The warehouse might be a Distribution Center for 'Wild Oats Market'. The grocery chain pays all expenses of maintaining the building inside and out, maintains grounds and pays annual taxes, all utilities and all communications expense. You (the owner) collect a check for lease rent once a month. The Wendy's Franchisee takes care of the restaurant inside and out; maintains the grounds; pays taxes and utilities and pays you (the owner) a percentage of net sales and rent once per month. The KinderCare Child Care Center Corporate Office takes care of evey component of the facility inside and out; pays taxes and utilities and maintains the roof integrity. Your monthly check is paid to you be their Corporate Offices.These are examples of

1. NNN Investment;
2. Pure Net Investment and
3. Absolute Net Investment.

A. An Annual Property Operating Data sheet is a detailed cash flow statement based on estimated income and expenses for the next twelve-month period. It includes proposed financing figures and a potential before-tax cash flow. It may also, for the purpose of calculating potential cost recovery (depreciation), show the allocation of value between land, improvements and personal property. This information contained in this report can be used by investors and their financial advisors to determine the suitability of an investment.