Replacement Property Comparison Worksheet
5 min · Tools & Templates · Last updated
Key Takeaways
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.
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