Exchange SFR Portfolio for Apartment?
Does anyone know if you are allowed to 1031 exchange a portfolio of single family rental houses for an apartment building?
Christy,
I recently sold a self serve car wash and then used those funds through a 1031 to purchase a 32 unit apartment, deferring over $200,000 in taxes. Passive Income property for passive income property is "like kind". I would recommend using an experienced 1031 exchange company with lots of good references. It can be a scary process since the rules are very specific and there is a lot of money in tax at stake. The company I used charged only $750.00, has been in business for decades and did an awesome job. They had all of the forms and processes laid out and worked directly with my title company during the close. Remember you must use the exact same entity selling the old property to buy the new property.
Good Luck
Brian Billings
Thanks so much for that information!
