What to do with $100,000
I recently asked about a 1031 for a vacation rental and while that may still be an option it's not looking like the best one for me. My single family rental is under contract and should close late next month with proceeds right at 100k. I'm having trouble finding a suitable rental property to purchase in the 400k range. Ideally I want a 4-plex but most in my area are 500+ and I don't want to spend any of my savings to increase the down payment. My lender says there are no loans available with less than 25% down for a 4-plex.
I'm also a licensed contractor and considered building a single family home for sale. Is it possible to use the 1031 to purchase a residential lot to build on? Is there a minimum purchase price for the replacement property? If I went this route I'd like to find a lot for 100k and buy it free and clear then use a construction loan to build the house.
Any other options I should consider? I don't want to end up just trading single family rentals and sure don't want to pay cap gains.