Frequently Asked Questions

Yes. With our net-leased investment opportunity in Single Family Homes (SFRs), the owner holds the direct title to each home. The owner has full discretion and can sell the property whenever at any time.

Yes. Each buyer will have access to an Owners Portal with specific property data, tenant financial statements, owner tax forms (1099).

Investors receive monthly net lease payments from Appreciation Homes, with a 1% annual increase.

Yes. Investors can rest assured that taxes, insurance, and maintenance are fully covered by Appreciation Homes. There are no landlord responsibilities or carve outs and this is a purely passive income investment opportunity.

SFR investments are often less volatile than publicly traded REITs, which are subject to stock market volatility.

With direct fee simple title to each individual home, investors have complete control to sell or refinance all or part of their portfolio at anytime.

With average dividend yields typically ranging from 3% to 5% we offer competitive returns when compared to many REITs. Additionally, we provide exposure to real estate with reduced volatility, more targeted asset selection, and direct ownership benefits—all without the correlation risks of the public markets.

Yes. You will always retain the relationship with your client. At every stage, we are here to support you as the trusted advisor — not replace you.

A 1031 exchange is a tax-deferral strategy that allows you to sell an investment property and reinvest the proceeds into a new “like-kind” property, thereby deferring all capital gains taxes. At CapFree Xchange, we specialize in helping investors move from high-maintenance properties into passive, net-leased single-family rentals. To see how much you could save in taxes and gain in cash flow, we recommend using our CapFree Investment Calculator.

 You must open an exchange before you close on the sale of your current property. The CapFree Xchange 3-Step Process simplifies this:
1) We help you identify vetted replacement properties
2) We oversee the sale and exchange coordination
3) You close on the new property to lease and earn with zero management.
CapFree managing this helps avoid common errors that most often lead to failures. The process requires you to use a neutral third party called a Qualified Intermediary to hold your funds between the sale of your old property and the purchase of your new one. You cannot touch the money yourself. CapFree Xchange oversees this entire process for you, coordinating with Qualified Intermediaries to ensure your funds remain secure while we identify high-quality replacement properties for your portfolio.

Within the first 45 days, you must identify a replacement property. If you do not, it is no longer valid. You have a strict 180-day total window to complete the exchange. Because finding high-quality inventory in this short window is the #1 cause of failure, CapFree Xchange maintains a pipeline of newer vintage homes from quality builders, ensuring you always have an eligible property ready to identify immediately.

If you sell without exchanging, you trigger a taxable event where deferred gains become due. However, many of our clients use CapFree Xchange to “swap” out of active management properties into our passive net-lease model. You can use the CapFree Investment Calculator to verify the exact “Tax Savings” and “Increase in Net Income” you would achieve by swapping into our passive model vs. cashing out.

A reverse 1031 exchange allows you to acquire your new replacement property before you have sold your current property. This is a powerful tool if you find the perfect CapFree Xchange investment property but haven’t found a buyer for your old asset yet.

Because you cannot hold title to both properties simultaneously, an Exchange Accommodation Titleholder (EAT) must temporarily hold the title to one property. While this process is more complex, CapFree Xchange can guide you through the logistics to ensure you secure the new income-producing asset immediately without waiting for your old property to sell.

This is the formal name for the standard transaction where capital gains taxes are postponed. It allows your investment to grow “gross” (pre-tax) rather than “net” (post-tax). At CapFree Xchange, we focus on maximizing this benefit by placing your tax-advantaged capital into credit-rated tenant properties that deliver stable, long-term yields.

No, Section 1031 only applies to properties held for productive use in trade, business, or investment. However, if you have a property that is “mixed-use,” such as a duplex where you live in one unit and rent the other, CapFree Xchange can help you exchange the rental portion into a fully passive single-family investment.

Yes, but only if it qualifies as an investment property. You must rent it out for at least 14 days per year and limit your personal use significantly. If you are tired of tracking these usage days to satisfy the IRS, many investors choose to exchange that vacation rental into a CapFree Xchange absolute net lease property to simplify their lives and guarantee their income.