EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

DST Fractional 1031 Calculator

DSTs offer passive 1031 replacement. This calculator sizes net yield.

$
%
%
%

Net annual yield

4.25%

Total return

$396,519

Approx IRR

5.75%

How the math works

Net yield = gross − fees. Total return = distributions × years + appreciation.

DSTs rarely match direct-ownership IRR but provide liquidity-after-exit and complete passivity. The structural cost is typically 100-200 bps of IRR drag — acceptable for retirees, expensive for active wealth-builders under 60.

How to Use

  1. Enter investment amount.
  2. Enter DST gross distribution rate %.
  3. Enter DST management/sponsor fee %.
  4. Enter expected hold years.
  5. Enter expected appreciation %.
  6. Read net yield and total return.

Frequently Asked Questions

What is DST?

Pre-packaged real estate fractional interest. Meets 1031 'like-kind' test (beneficial interest in real estate). Passive investment (no management). Typical hold 5-10 years, then disposition distributes proceeds.

Typical terms?

Investment minimum: $25-100k. Gross distribution: 4-7% of equity annually. Sponsor fees: 8-15% upfront + 1-2% annual. Illiquid (no secondary market). Appreciation modest (0-3% annually typical). Management passive.

When to use?

Exchange proceeds need home, no active asset available, investor wants passive cash flow. Not for investors seeking growth — DSTs are yield vehicles, not value creation. Age 60+ retirement planning common user.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →