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1031 Exchanges

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Tom Bud
  • Property Manager
  • Brooklyn, NY
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1031 for mortgage pay off?

Tom Bud
  • Property Manager
  • Brooklyn, NY
Posted Feb 23 2015, 07:29

Hi BP friends,

I was researching 1031 exchanges and couldn't find a concrete answer to my question.

Imagine this scenario;

An owner bought a building at $350K with a conventional mortgage. Owner sells building for $1M, uses $200K from the proceeds to pay off mortgage. Owner has $800K left. Owner has another building in another state with a mortgage of about $800K left and wants to pay that off as well. Would a 1031 Exchange work here?

Thanks for any help,

Tom B.

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