What To Do With $240k From 1031 Exchange?
Hoping for suggestions from the forum's experts that will help clear my thinking and let me make a decision.
Will be selling SFR rental and net about 240K which I want to use to buy new properties.
Principally interested in generating cash flow at this point.
Will consider out of state investments since CA market is very expensive and does not provide good cash flow.
Any suggestions, advice, warning about locations to target & type of properties to buy??
THANKS
Since you have a substantial amount of cash available to use as a downpayment, I would recommend a multi-family property.
As for where in the country to invest, that is a good question. I think the improtatn thing with a multi-family (as compared to SFH) is how it is already functioning and producing cash. Look at the financials of the last couple of years. It is somewhat of a numbers game.
Good Luck!
Single tenant triple net retail investment in Suburban Spokane or E. WA, Boise or Bend/Redmond OR area. AZ and NV have already inflated.
Why you ask?
Higher CAP rates than smaller multi-family properties
Only one tenant to deal with
Longer term leases and built in rent escalations.
Tenant pays for approved improvements
Tenant pays for some/all building expenses
Easier/less expensive to manage
Correct me if im wrong..but with tax exchange, funds must be exchanged for a similar property inorder for money to be exempt. i.e. Single family for a single family, or a multiple dwelling, for a multiple dwelling.
Birddog,
You are not wrong on the general rule, like-kind property must be exchanged. You are just a little too narrow in your interpretation of like-kind property.
Essentially, any investment real estate can be exchanged for any other investment real estate. Even an exchange of raw land for a multi-unit rental is permitted.
As long as the relinquished property AND the replacement property both have a qualified investment use, they are like-kind property.
The issue is whether a 1031X is valid if you're going from "residential investment" property into "retail investment" property.
Seems that this would not qualify.
Any US real property can be exchanged for any US real property.
A house can be exchanged to a duplex.
30 houses can be exchanged for an office building.
An office building can be exchanged for ocean front property (and then you can move in it and take the tax exemption!)
A house in europe can NOT be exchanged for anything in the US.
Magega
Have you looked into the Miami market? I have found great deals there.
Sent me a private email and I can give you contact to a few brokers.
Magega
Have you looked into the Miami market? I have found great deals there.
Sent me a private email and I can give you contact to a few brokers.
Vegas anyone?
