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Compare Missouri 1031 replacement candidates against sale comps, rent comps, and cap rates to keep deadline pressure from driving overpayment.
ExplorePreflight Missouri replacement property financing before the 1031 identification deadline with a lender submittal package and closing checklist.
Explore
Track potential boot in a Missouri 1031 exchange with a value and debt ledger, settlement statement reconciliation, and CPA-ready handoff.
Explore
Organize dates, property descriptions, and boot figures from a Missouri 1031 exchange into a CPA-ready package for Form 8824 preparation.
ExploreA trailing twelve month, or T12, financial review reconciles a candidate's reported income and expenses against bank statements, tax returns, or management ledgers before the number is used in any exchange comparison. The seller's marketing summary is a starting point, not the final figure, and the reconciled version is what actually informs the exchanger's decision.
Base rent, reimbursements, and other income lines are checked month by month against deposits, since a marketing T12 can smooth over a slow month by averaging it with a strong one. One-time items, such as a lease termination fee or an insurance settlement, are pulled out of recurring income so they do not inflate the ongoing number.
Where a month's income looks unusually strong compared to surrounding months, the underlying deposit records are checked before that figure is accepted into the reconciled total.
Reimbursement income is checked against the underlying lease terms as well, since a property that shows strong reimbursement collections on paper can still fall short if actual tenant billback compliance has been inconsistent.
Property tax, insurance, utilities, repairs, and management fee are checked against actual invoices where available. Sellers sometimes present a T12 with an understated management fee or a repairs line that excludes deferred maintenance about to come due; both are flagged in the review rather than accepted at face value.
A management fee that appears below the local market rate is normalized upward in the analysis, since the exchanger will pay a market-rate fee going forward regardless of what the prior owner charged themselves.
Insurance premiums are checked against the current policy period rather than an older renewal, since premium increases in recent years can make a stale invoice understate the true forward-looking expense.
The following items are checked on every candidate before the T12 is treated as reconciled.
Any item that cannot be verified against source documents is noted as unresolved rather than folded into the final figure.
Utility expense is checked against consumption history rather than a single trailing invoice, since a recent rate change from the local utility provider can make one month's bill a poor guide to the ongoing expense.
Property tax reassessment on sale varies by county across Missouri, and a candidate in St. Louis County, Boone County, or Greene County can see a meaningfully different post-sale tax bill than the seller's trailing T12 shows. This is modeled explicitly rather than left as a surprise after closing.
A post-sale tax estimate is built using the county assessor's methodology where it is publicly available, so the projected expense reflects local practice rather than a generic statewide assumption.
Insurance costs are reviewed with the same county-level lens, since carrier pricing and availability can differ between the St. Louis metro, the Ozarks region, and smaller I-70 corridor counties depending on claims history in that area.
The reconciled net operating income figure, not the seller's marketing number, is what gets used to compare candidates against each other and against the lender's underwriting, and the full reconciliation file is attached to the submittal package for the exchanger's review.
A short summary sheet highlights where the reconciled figure differs from the seller's marketing number, so the exchanger can see exactly which adjustments drove the change.
Where the reconciled figure comes in meaningfully below the marketing number, the exchanger and lender revisit the offer price together rather than proceeding on assumptions that no longer match the underlying financials.
Marketing summaries can smooth over weak months, exclude deferred maintenance, or understate management fees, so the figures are reconciled against bank statements or ledgers before they are used to compare candidates. This step is standard on every serious candidate.
Reassessment on sale can raise the tax line meaningfully in some counties, so a post-sale tax estimate is modeled and compared against the seller's trailing figure rather than assuming the tax expense stays flat. The estimate uses local assessor methodology where available.
No. One-time items are separated out and noted individually so they do not inflate the recurring income figure used for comparison and lender underwriting. They are still disclosed for context, just not folded into the ongoing number.
Yes. Lenders typically underwrite against a reconciled net operating income figure, so the T12 review is shared with the financing contact before final loan terms are set. This avoids a late mismatch between the exchanger's expectations and the lender's own numbers.
It is noted as unresolved in the reconciliation file rather than accepted at the seller's stated figure, and the exchanger decides whether to request further supporting documentation from the seller before relying on that line item in the exchange comparison.