1031 Exchange Forum

Exploring Replacement Property Options Beyond Traditional Real Estate
1031 Exchanges
Fort Worth, Texas
Exploring Replacement Property Options Beyond Traditional Real Estate

I’m curious how other investors approach a 1031 exchange when the goal is to move away from active property management. Many first-time exchangers naturally look at another rental, commercial property, or a DST. But depending on the facts and circumstances, there may be other real estate-based op...

can you 1031 an investment property and then use as second home
1031 Exchanges
can you 1031 an investment property and then use as second home

If one changes the use of an investment property to a second home .. I guess the question is what is the tax ramifications of recapture since I have no basis do I pay it the next tax year or would it be paid when I actually sell it .. or since it will be in my trust and go to the kids what then.....

Crew Enterprises DST Investors with suspended distributions please PM me
1031 Exchanges
Crew Enterprises DST Investors with suspended distributions please PM me

If you are a DST investor with Crew Enterprises formerly known as Versity, and before that NB Private Capital, and have had your monthly distributions suspended I'd like to hear from you. Please PM me. Thanks to Bigger Pockets members I am now aware of six Crew DSTs that have or had their distrib...

1031 after a purchase
1031 Exchanges
1031 after a purchase

I own a STR in Wells, Maine. I may sell it now (next 6 weeks) and realize roughly $1M of gain. In January I purchased another home that is not yet approved for subdivision but I expect it will be fully approved in the next few months and am knocking down the existing home and developing four home...

When a 1031 Deadline Drives the Deal, What Will You Not Compromise On?
1031 Exchanges
When a 1031 Deadline Drives the Deal, What Will You Not Compromise On?

A 1031 exchange can solve a tax-timing problem, but the deadline can also create an underwriting problem. Consider this hypothetical situation: An investor sells a rental property and has approximately $300,000 of equity to reinvest. On day 38 of the identification period, the best available repl...

Strategies for selling occupied, cash-flowing SFRs — 1031 buyers or otherwise?
1031 Exchanges
Dallas, Texas
Strategies for selling occupied, cash-flowing SFRs — 1031 buyers or otherwise?

I have access to a fairly large portfolio of leased, tenant-in-place single-family homes across DFW and Houston — mostly 2005-2010 vintage, professionally managed, with tenants already in place at closing. Cash flow is strong relative to typical rentals in these markets, which I think makes them ...

1031 into NNN: what return and hold period are you actually underwriting to?
1031 Exchanges
1031 into NNN: what return and hold period are you actually underwriting to?

Curious what the market is actually pricing in right now, not what a broker’s pitch deck says. For those of you who’ve done a 1031 into a triple net lease property, what return were you actually underwriting to going in, cap rate, cash-on-cash, whatever number you look at first? And separately, w...

1031 exchange; subdivide the intended purchase property?
1031 Exchanges
1031 exchange; subdivide the intended purchase property?

I have located a farm I'd like to buy. It is off market, and has an existing farmhouse duplex on site, which is currently rented. I want to both retain the farmhouse as a rental, and also, build a new home and live in it on the remainder of the property. currently, the land is on two parcels: a 1...

What’s the Minimum Amount Where a 1031 Exchange Makes Sense?
1031 Exchanges
What’s the Minimum Amount Where a 1031 Exchange Makes Sense?

I was having a conversation recently about 1031 exchanges and it got me thinking. As most of you know, there’s no legal minimum amount of gain or property value required to do a 1031. The real deciding factor is whether the tax deferral is worth the cost of hiring a Qualified Intermediary (QI) an...

Opinion on validity of 1031 Exchange
1031 Exchanges
Asheville, North Carolina
Opinion on validity of 1031 Exchange

Hi, I hoping one of our accounting gurus that like to get in the weeds might offer their opinion on this case. I did a land for land 1031 exchange with a company in 2022/2023. The original property was purchased on 9/7/2021, it was subsequently sold 7/8/2022 for an 80% profit. The replacement pro...

1031 Exchange to build ADU on family owned property
1031 Exchanges
Portland, Oregon
1031 Exchange to build ADU on family owned property

Hello, I’m looking for guidance on if a 1031 exchange is applicable in my situation. I currently own a single family rental property that I’m planning on selling. The sale price will most likely be around $500,000 and the mortgage is currently about $200,000. I plan on using the profits (let’s ju...

To 1031 or not?
1031 Exchanges
To 1031 or not?

I'm on the fence and wanted to seek the wisdom of the crowd. We are listing a property for sale and are considering whether to 1031 into the next one or just pay the taxes, sit on the cash, and move at our own timeline. Any thoughts or opinions? Tax bill will likely be $25-30k Pros of 1031: 1. Ta...

Boot on a 1031 Exchange
1031 Exchanges
Orange County, California
Boot on a 1031 Exchange

You have a property worth $800k. Mortgage is $300k. You sell the property and have $500k profit proceeds (for simplicity, no costs). For a 1031 can you buy two replacement rental properties; One for $400k paid in full, zero mortgage. Then a second for $400k or more with 100k down and at least a $...

Selling Rental Home, How Do I Avoid Taxes
1031 Exchanges
Phoenix, Arizona
Selling Rental Home, How Do I Avoid Taxes

Good morning, Needed your help and would appreciate thoughts. Iam selling a rental home that has been owned for over 10 years located in Phoenix, Arizona. What are my different options to avoid /defer taxes? I have done 1031 exchange before but was looking for other options to see if I could defe...

DST Investors: What Do You Wish You Knew Before Your First 1031 Exchange?
1031 Exchanges
El Paso, Texas
DST Investors: What Do You Wish You Knew Before Your First 1031 Exchange?

I'm researching DSTs as a potential destination for a future 1031 exchange and recently came across several investor discussions involving suspended distributions, sponsor issues, and communication problems. For those who have actually invested in DSTs (especially those who have gone through a fu...

Sell, 1031, or house hack?
1031 Exchanges
Sell, 1031, or house hack?

I am in the middle of flipping two houses. I plan on moving into one of them. One will be done about a year before the other. I’m wondering what you guys would do for taxes on them? I could live in the first one for two years(but would pay mortgage/interest obviously) or sell right away and 1031 ...

1031 options for retirement
1031 Exchanges
Colorado Springs, Colorado
1031 options for retirement

My husband and I own 3 properties and are nearing retirement. We'd like to be done landlording, and don't want to have loans. Each property has a loan currently. 1. Can we sell one property (and not 1031 it) to pay off the loans on the other 2, then sell the paid off properties as 1031? 2. What o...